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DreamWorks CEO Wants Sale Of '$35 A Share': Sorkin


Dreamworks Animation Skg Inc (NASDAQ: DWA) shares are up by more than 17 percent on Thursday after news erupted on Tuesday that toymaker Hasbro, Inc. (NASDAQ: HAS) is planning to acquire the company. However, the news hasn’t been as favorable for Hasbro, whose shares are down more than 5 percent on the day.

The news was first reported by the New York Times in article published late in the evening on Wednesday. According to the article, “The toymaker Hasbro is in advanced talks to buy DreamWorks Animation, potentially gaining a new big-screen outlet for its wares, people briefed on the matter said on Wednesday.”

CNBC’s Andrew Ross Sorkin provided the latest update on Monday morning, and also discussed on the possible valuation Dreamworks can get if it is acquired.

“I would actually argue that the CEO of Hasbro has been trying for the past several years to get into the entertainment business in a more meaningful way. He has done it in fits and starts thus far, tried to do a deal with Discovery with craving this network called the Hub. That didn’t work out; Discovery has now re-branded that channel as Discovery Family. They have started a studio business. So, they have been edging towards this direction […],” Sorkin said.

According to Sorkin, the real question is whether the investors in Hasbro will benefit from the company’s plans to get into the entertainment business as it’s generally considered very risky. However, Sorkin feels that if this deal goes through, it will prove quite beneficial for Dreamworks Animation, which will be able to mitigate the risk and volatility involved in the movie business by joining forces with a much bigger company that is into the relatively stable business of selling toys.

“I am told Jeffrey Katzenberg would like to see a $35 a share price on this. I am told the Hasbro side of the world thinks the number should be a little bit less. Probably starts with a 3 but doesn’t necessarily get to $35,” Sorkin added. 


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