Dreamworks Animation Skg Inc (DWA)’s Acquisition By Softbank Corp (9984) Talks Slow Down

Dreamworks Animation Skg Inc (DWA)

The stocks of Dreamworks Animation Skg Inc (NASDAQ:DWA) went skyrocketing after the acquisition talks with Softbank Corp (TYO:9984). Dreamworks Animation Skg Inc (NASDAQ:DWA) closed at $28.18 on Monday with 26% increase in share prices, although the share prices went down by 7.42% in the afterhours trade after the news came out of slowing discussions.

Despite of the rumors of slowing down discussions, there is a possibility that negotiations might start for a content partnership instead of acquisition. As a matter of fact, Dreamworks Animation Skg Inc (NASDAQ:DWA) crossed $2 billion market capitalization mark after the announcement. Dreamworks Animation Skg Inc (NASDAQ:DWA) is behind some of the most successful animated movie series including “Kung Fu Panda,” “Shrek,” and “Madagascar Movies.”

Dreamworks Animation Skg Inc (DWA)

Softbank Corp (TYO:9984) made an earlier acquisition offer of $32 per share for Dreamworks Animation Skg Inc (NASDAQ:DWA) against its lower share price. Jeffrey Katzenberg, CEO of Dreamworks Animation, tried to sell the company two years ago but later withdrew the plans to develop wider content media streams for the company. In the same efforts, Dreamworks Animation Skg Inc (NASDAQ:DWA) acquired AwesomenessTV last year for a total sum of $33 million. Further, Katzenberg later said that he is more focused towards growing the business and diversifying its content offerings.

The last two years have been, somewhat, slower for the company including its poor second quarter 2014 results. Dreamworks Animation Skg Inc (NASDAQ:DWA) announced revenue of $122.3 million for second quarter 2014 with net loss of $15.4 million.

Earlier, Softbank Corp (TYO:9984) made another move to acquire a potential entertainment house, Legendary Entertainment, and the deal has been going for several weeks and is not influenced by the slowing discussion between Softbank Corp (TYO:9984) and Dreamworks Animation Skg Inc (NASDAQ:DWA).

This article has been written by Prakash Pandey.

 

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