Report: DreamWorks Animation, Hasbro toy with merger (Video)
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- Annlee Ellingson
- Staff Writer- L.A. Biz
- Email | Twitter
Sale talks are getting animated at DreamWorks Animation again. Six weeks after acquisition negotiations with SoftBank broke down, the Glendale studio is reportedly hammering out a deal with Hasbro. Simultaneously, DWA is in discussions with Hearst for the publishing company to take a 25 percent stake in AwesomenessTV. Deadline broke the news on both potential pacts yesterday evening.
If the sale to Hasbro (NYSE: HAS) goes through, the new company would be called DreamWorks-Hasbro and chaired by DWA CEO Jeffrey Katzenberg. Katzenberg is said to be asking for $35 a share, a nearly 57 percent premium over Wednesday's closing stock price. Shares surged to $26.76 at opening today.
DreamWorks Animation's film output has been tumultuous as of late. The studio behind the smash-hit series "Shrek," "Madagascar" and "Kung Fu Panda" has had to take write-downs on "Mr. Peabody & Sherman," "Turbo" and "Rise of the Guardians." "How to Train Your Dragon 2" represents a bit of a rebound with $618.7 million at the worldwide box office. "Penguins of Madagascar," a spinoff of the company's popular "Madagascar" franchise, opens Thanksgiving week.
As a result, DWA (NASDAQ: DWA) has been diversifying its portfolio with television projects (including a pact with Netflix to provide 300 hours of original kids programming), live entertainment and consumer products. A merger with Hasbro, which makes toys for Disney, Marvel and "Star Wars," would give DreamWorks a direct line to merchandising opportunities for its IP.
Meanwhile, Hasbro has been diversifying as well, launching film franchises based on its toys and games, including the $3.8 billion-grossing "Transformers" and "G.I. Joe" (we'll ignore "Battleship" for now) and spinning off a new production label called Allspark Pictures, which is working on adaptations of "Jem and the Holograms" and "My Little Pony." Pacting with DreamWorks Animation would give the toy company access to not only Shrek, Po and the "Madagascar" gang but Classic Media IP like Rocky and Bullwinkle and Casper the Friendly Ghost, which DWA acquired in 2012.
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