Hasbro/Dreamworks Animation Merger Talks Dead.
The proposed deal between Hasbro and Dreamworks Animation seems to have died just as quickly as they sprung up. DreamWorks Animation had been seeking $35 a share from Hasbro, but many Wall Street analysts deemed the price steep and said so in research notes published Thursday and Friday. Investors apparently agreed, because a day after the merger negotiations were leaked — including the $35 per share price tag — shares of DreamWorks rose just 14 percent to $25.52, a hefty 37 percent below what the studio had been asking. Since the price of the stock was so closely tied to the deal, the drop made the merger unlikely.
Another factor is the merger talks failing was Disney. The House of Mouse has had several of it’s toys manufactured by Hasbro including Star Wars, Marvel, and Frozen. It obviously didn’t set well with Disney to have Hasbro merge with one of it’s leading competitors.
With these talks dead, Hasbro seems to have decided to largely go on it’s own and also keep up a partnership with Discovery Networks.
Source: Hollywood Reporter
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