Just days after news of talks between DreamWorks Animation and Hasbro to merge surfaced, the potential deal is dead. It’s the second time in less than three months that talks between DWA and another company have faltered.
The potential deal with Hasbro acquiring Jeffrey Katzenberg’s studio would have been worth at least $2.3 billion. But once news of the deal leaked, Hasbro’s stock took a hit and DWA’s plummeted on Friday after the talks ended.
Sources for Variety confirmed that the talks ended on Friday while in the very early stages. News that the talks broke down were first reported by The Hollywood Reporter.
The New York Post reported that Hasbro CEO Brian Goldner wasn’t happy about news of the talks leaking, especially since they were only in the very early stages. But it was clear that investors didn’t like the idea.
DWA has been looking for buyers, but Katzenberg has overvalued his company. Back in September, Japanese telecom giant Softbank expressed interest, but the company moved on and decided instead to take a stake in Lionsgate.
DWA was once a powerhouse studio, with Shrek, Kung Fu Panda, and Madagascar, but recent flops like Turbo and Mr. Peabody and Sherman have put it on shaky ground. They are heading back to the Madagascar franchise with the Penguins of Madagascar movie opening this month and How To Train Your Dragon 2 was an acclaimed hit earlier this year, though.
image courtesy of INFphoto.com