Hasbro is in advanced talks to buy Dreamworks, although it isn’t a done deal. Last month, Softbank seemed likely to buy the movie studio headed by Jeffrey Katzenberg, but the deal didn’t pan out. While an exact price hasn’t been determined, Katzenberg is expected to ask for $30 per share, which is a significant premium to where the stock traded recently at $22.34.
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If the merger happens, Katzenberg is likely to stay with the company. Hasbro, the second largest toy producer in the U.S. after Mattel, has been seeing healthy sales and profits. It formed its own studio in 2009 to make children’s shows and movies. Its Transformers series has been a success along with it horror film Ouija.
Dreamworks is one of the smallest studios in Hollywood and produces a few films a year, but has had smash hits like Shrek and Kung Fu Panda. However, lately, its earnings have stumbled and How to Train Your Dragon 2, while a success, did not sell as well as the first film. Dreamworks has reported two consecutive quarters of losses.