Analysts Weigh in on the Softbank-Dreamworks Rumor

Following multiple news reports on September 27th of a possible $3.4 billion acquisition bid from Softbank for Dreamworks Animation

, a number of analysts have issued notes detailing their thoughts of a possible deal.

As a result of the rumor, Bank of America has removed both its rating and price objective for Dreamworks stating, in the firm's opinion, the stock is no longer trading based on its fundamentals therefore previous assessments should be ignored. The analysts at Bank of America commented, "We view the reports favorably, as in our view a transaction would mark yet another milestone for the rising values of Hollywood content in an environment where there are more ways to monetize than ever before." The team also noted this opens the door for other potential bids.

The analyst at Topeka commented, "Given that DWA has not yet accepted any bid, and given our belief that this is a monopsony situation, we are maintaining our Hold rating and also maintaining our target at $23.00, as we do not believe there is any formal "bid" as of yet." The team also noted the $3.4 billion bid would equate to roughly $32 per share for Dreamworks.