Japanese-owned Softbank is in talks to consider buying Dreamworks Animation for $32 per share. Dreamworks recently has been trading at $22 per share. While Dreamworks has been CEO and founder Jeffrey Katzenberg’s “baby, ” he has expressed interest in the past in selling off his company. Softbank’s offer values the company at $3.4 billion, as reported by the Hollywood Reporter.
Katzenberg has signed a contract to remain with the company for five years if there is a deal with Softbank, and the Dreamwork’s board held a special meeting to discuss the offer. However, a Dreamworks spokesman was mum about an actual decision; “We don’t comment on rumors and speculation.”
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Dreamworks Animation was spun off from Dreamworks studios in 2004. The company has been volatile with huge hits like How To Train Your Dragon 2 grossing $611 million but duds like Mr. Peabody and Sherman taking in just $273 million. Softbank may be in a good position to buy Dreamworks after making quite a bit of money with its Alibaba stake, worth at least $60 billion.
