Nov 13, 2014 7:34 AM
DreamWorks soars on report of Hasbro deal talks
The Associated Press
NEW YORK (AP) Shares of DreamWorks Animation SKG Inc. are soaring in Thursday premarket trading 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.
Hasbro Inc. said Thursday that it does not comment on rumors or speculation.
A representative for DreamWorks did not immediately respond to a request for comment.
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 jumped $6.13, or 27.4 percent, to $28.50 before the market open.