Shares Of Dreamworks Sell off As Softbank Invests $250 Million Into Legendary Entertainment

Shares of Dreamworks Animation Skg Inc DWA opened under major selling pressure on Thursday. Rumors were circulating the Street that Legendary Entertainment would be receiving an investment from Softbank in the range of $250 million. Prior to any confirmation of such investment, Dreamworks shares sold down more than $1 until about 10:40 a.m. EDT when a confirmation was released regarding the investment from Softbank.

Short sellers covered their positions upon the release and shares of Dreamworks traded around $25.50 for about an hour before bears decided to re-enter positions. Around 11:00 a.m. EDT, sellers jumped on Dreamworks shares and drove the stock down another dollar to a low of $24.36.

Dreamworks was last down 6.1 percent at $25.10.