DreamWorks Animation SKG Inc saw stock prices jump more than 15 percent today after it was revealed that Hasbro is in discussion to purchase the animated film studio. The news comes just weeks after the Inquisitr reported on a potential purchase by Japan’s SoftBank.
According to USA Today, talks between Hasbro and DreamWorks are in the advanced stages, and negotiations of a cash and stock purchase are underway. The final purchase price has yet to be revealed. The new company would be called DreamWorks-Hasbro. However, Hasbro is not the only company in negotiations, according to Deadline.
“DreamWorks Animation is deeply engaged in two potentially game changing negotiations that could transform the company — including one with Hasbro to forge a family entertainment powerhouse to be called DreamWorks-Hasbro. The other talks are with Hearst to turn DWA’s AwesomenessTV into a joint venture.”
Past talks with SoftBank, parent company of Spring, hit a dead end in negotiations, leaving the door open for Hasbro show interest. If DreamWorks-Hasbro becomes a reality, Jeffrey Katzenberg would become chairman of combined operations for the newly formed company. Neither company offered to comment on the negotiations.
DreamWorks responded by saying, “As a publicly traded company, we don’t comment on rumors and speculation.”
Hasbro respond with a similar statement, saying “[A]s a matter of corporate policy we don’t comment on rumors or speculation.”
DreamWorks is known for hit movies such as Shrek, How to Train Your Dragon, and Madagascar. Hasbro is the manufacturer of My Little Pony, Monopoly, and Play-Doh. Is it possible that a Play-Doh movie could be developed to rival the Lego Movie?
Margaret Whitfield, a toy analyst, believes that many of Hasbro’s toy lines could see life on the big screen if the merger happens, assuming Disney does not object to the deal.
“given the importance of the Disney relationship to Hasbro, I doubt the deal would proceed without first ensuring Disney had no objection. If bought, it would be another platform to transform its (Hasbro) many toy properties into entertainment brands as it has done with several studios.”
Further details on the proposed deal could be far off, depending on many factors. However, the merger brings an array of possible new film franchises that stem from many favorite childhood toys. If the merger were to take place, what classic toy are you anticipating to hit the big screen? Are there any you hope they do not touch?
[Photo Courtesy: Tomopop]