Hasbro in talks to acquire the DreamWorks Animation

Hasbro is in talks to acquire the DreamWorks Animation film studio, potentially marking a big step into entertainment by the toymaker.

DreamWorks Animation, led by Jeffrey Katzenberg, is said to be asking for more than $30 a share.

Dreamworks Animation, with a market value of about $1.9 billion, would deepen Hasbro's involvement in film and TV. The toymaker has a 40 per cent stake in the Discovery Family Channel, previously called the Hub.

Hasbro also has lent its products to films including “Transformers: Age of Extinction” the top- grossing film worldwide this year. A price above $30 a share would represent at least a 34 per cent premium to yesterday’s closing price of DreamWorks Animation, maker of the “Shrek” films.

The company has been diversifying into television, online video and theme parks to reduce its dependence on the hit-or-miss film business.

DreamWorks Animation, based in Glendale, California, rose 1.5 per cent to $22.37 yesterday in New York. Hasbro gained 1.4 per cent to $57.47, giving it a market value of $7.22 billion.

The talks were reported earlier by Deadline.com, which said Katzenberg would become chairman of the combined operation.

DreamWorks Animation and Hearst have also had talks to jointly own Awesomeness TV, the online video business the studio acquired last year, the people said. Those talks were reported by Deadline.

Katzenberg had talks with Softbank, the Japanese telecommunications company headed by Masayoshi Son, people with knowledge of the situation said in late September.

The talks with Softbank have ended, one of the people said yesterday. Julie Duffy, a spokeswoman for Pawtucket, Rhode Island- based Hasbro, declined to comment, citing company policy, as did Matt Lifson, a spokesman for DreamWorks Animation. Paul Luthringer, a spokesman for New York-based Hearst, didn’t respond to a request for comment after normal business hours.

Bloomberg