DreamWorks climbs on report of Hasbro deal talks

AP News
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Posted: Nov 13, 2014 12:00 PM
DreamWorks climbs on report of Hasbro deal talks

NEW YORK (AP) — Shares of DreamWorks Animation SKG Inc. jumped Thursday following a media report that toy company Hasbro is in discussions to buy the studio.

The New York Times, citing anonymous sources briefed on the talks, reported that Hasbro is in "advanced talks" with DreamWorks about a potential deal that would include a combination of cash and stock.

DreamWorks and Hasbro Inc. both said Thursday that they do not comment on rumors or speculation.

The report of the talks between Hasbro and DreamWorks comes less than two months after reports said that DreamWorks was in discussions with Japanese telecommunications and Internet company Softbank about a possible buyout or some type of partnership.

Glendale, California-based DreamWorks is known for popular movie franchises such as "Shrek" and "Madagascar," but some of its other films — like "Turbo" and "How to Train Your Dragon 2" — have not done as well as anticipated.

Last month DreamWorks third-quarter results beat analysts' expectations. Hasbro, which is based in Pawtucket, Rhode Island, reported in October a third-quarter adjusted profit just shy of Wall Street expectations. Its revenue met analysts' estimates.

DreamWorks' stock surged $3.71, or 16.6 percent, to $26.08 in midday trading. Shares of Hasbro declined $3.02, or 5.3 percent, to $54.45.