Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, September 29, 2014

DreamWorks-SoftBank talks may augur Hollywood dealmaking wave, (NASDAQ: DWA)

DreamWorks Animation SKG Inc's talks about taking on a Japanese owner highlight the challenges facing Hollywood's smaller studios in remaining independent and could prompt a string of other deals.Over the weekend, a source said DreamWorks, the studio best known for movie franchises including "Shrek" and "Madagascar," had held talks about a possible sale to SoftBank Corp, the cash-rich Japanese communications and media company.While a SoftBank source and banking sources in Japan said interest in a deal now appeared cool, the development could make other independent studios the targets of larger players, or prompt them to seek outside buyers or investors.Many smaller, independent studios produce only a handful of movies each year, making them especially vulnerable to box office disappointments, such as those that DreamWorks has produced lately with "Rise of the Guardians," "Mr. Peabody & Sherman" and "Turbo." And they don't have the other businesses like cable channels or theme parks to help ride out film flops.

DreamWorks Animation SKG, Inc. (DreamWorks Animation) is engaged in the development, production and exploitation of animated films and their associated characters in the worldwide theatrical, home entertainment, television, merchandising and licensing and other markets. Shares of DWA traded higher by 26.03% or $5.82/share to $28.18. In the past year, the shares have traded as low as $19.20 and as high as $36.01. On average, 1404620 shares of DWA exchange hands on a given day and today's volume is recorded at 19501196.