Is DreamWorks Animation About To Be Bought By A Japanese Company For $3.4 Billion?
DreamWorks Animation could be on the verge of being bought by Japanese conglomerate SoftBank, for the hefty price of $3.4 billion, it has been reported.
The Hollywood Reporter writes that “a source with knowledge of the situation”, has said that the company is in talks to acquire the studio, in a deal that would see the company valued at $3.4 billion.
According to the source, the DWA board held an emergency meeting Thursday to consider the offer, which would also see founder and CEO Jeffrey Katzenberg signing a five-year contract to remain with the company. However a spokesperson for the studio refused to comment, saying they "don't comment on rumours and speculation.”
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Katzenberg is said to have long been looking for a buyer for DWA, which became a public company in 2004. Currently the studio’s movies are released through 20th Century Fox.
Recently, SoftBank has been in the news because of its $20 million investment in Chinese Internet giant Alibaba, a stake which is now worth a minimum of $60 billion. The company is thought to be undervalued, with Jefferies Group LLC rating it as "a compelling buy opportunity.”
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Dreamworks Animation's stock has been on a roller-coaster ride lately, as the studio has seen mixed fortunes at the box office. Earlier this year Mr. Peabody & Sherman under performed, taking just $273 million worldwide, while How to Train Your Dragon 2 fared much better, raking in $611 million this summer.
The studio's latest movie The Penguins of Madagascar, featuring the voice talents of Benedict Cumberbatch and John Malkovich, opens in cinemas on November 26th.