×
You will be redirected back to your article in seconds

DreamWorks Animation’s Stock Soars on Sale Talk

Softbank’s $3.4 billion play for DreamWorks Animation has sent the entertainment company’s stock soaring.

Shares of the film and television studio were up more than 20% in pre-market trading and were up 17.44% to $26.26 T 10:20.

Softbank is a Japanese telecommunications and Internet giant with investments in such companies as Sprint, Yahoo Japan and Alibaba. DreamWorks boasts a film library that includes “Kung Fu Panda,” “How to Train Your Dragon” and “Shrek,” as well as investments in the television and digital space through its acquisition of AwesomenessTV and pact with Netflix. It also has made inroads into China through its Oriental DreamWorks joint venture, which is engaged in everything from Internet content to theme parks.

Most analysts think a deal makes strategic sense.

“Unlike other consumer technology platform/distribution companies (Google, Yahoo!, Netflix), which have deliberately chosen to remain open platforms with no ties to any particular content companies, SoftBank’s past bid for Universal Music signals a desire to own content,” wrote Stifel analyst Ben Mogil in a note. “More importantly the bid for Universal Music indicates a stomach for content companies in the midst of large-scale changes in consumption patterns.”

That strong stomach could come in handy. DreamWorks Animation’s stock has undergone ups and downs as it has been battered by a series of costly film flops such as “Rise of the Guardians,” “Turbo” and “Mr. Peabody and Sherman.” Being part of a larger company might help it better withstand the cyclical nature of the film business, analysts said.

“We believe DreamWorks has attempted to find buyers in the past, and a sale would solve the existential question of what to do given a very uneven track record at the box office and a lack of meaningful profitability over the past three years,” wrote Cowen & Co. analyst Doug Creutz in a note to investors.

It’s not clear if DreamWorks Animation will continue to see its share price rise, particularly in light of a report that Softbank may be cooling on a possible purchase. That pushed the Japanese company’s stock down by more than 1%.

More Film

  • Ken Burns

    Ken Burns, Library of Congress to Present Documentary Award to 'Flannery'

    Documentarian Ken Burns is partnering with the Library of Congress and two philanthropic organizations to present a new award to “Flannery,” a documentary about Flannery O’Connor. Filmmaker Elizabeth Coffman and Jesuit priest Mark Bosco will be presented the first Library of Congress Lavine/Ken Burns Prize for Film on Oct. 17 at the library. The award includes [...]

  • Palazzo BarberiniPalazzo Barberini, Rome, Italy -

    International Execs Descend on Rome as MIA Market Serves Fresh Films, TV Dramas, Docs

    Rome’s MIA market for TV series, feature films and documentaries kicks off today with hundreds of international buyers descending upon the Eternal City for four-days (Oct. 16-20) of presentations of fresh top-notch mostly European product and dealmaking done in a more relaxed setting than Mipcom. The new concept mart now at its 5th edition, which [...]

  • Former Orange Studio Exec Andrei Kamarowsky

    Former Orange Studio Exec Andrei Kamarowsky Becomes Gulf Film COO (EXCLUSIVE)

    Andrei Kamarowsky, who recently stepped down from Orange Studio where he spearheaded international, has joined Dubai-based distribution group Gulf Film as Chief Operating Officer. Founded three decades ago, Gulf Film is involved in both distribution and exhibition in the Middle East, and has close relationships with Studiocanal, Pathé, having output deals with STX Entertainment, MGM, [...]

  • Harry Connick Jr. American Idol

    Harry Connick Jr. to Receive Star on the Hollywood Walk of Fame

    Grammy and Emmy Award winner Harry Connick Jr will be honored with at star on the Hollywood Walk of Fame next week. The ceremony will take place on the morning of Oct. 24. “When choosing a star location, we try to incorporate ties to the honoree and this one turned out to be a coincidence [...]

  • Zombieland: Double Tap

    Film Review: 'Zombieland: Double Tap'

    The zombies have evolved in “Zombieland: Double Tap”; the comedy not so much. But that’s OK, because Ruben Fleischer’s 2009 breakout hit — which gobbled up $75.6 million in a genre fast approaching its pop-culture saturation point — was already a few steps ahead of the curve: Its central quartet actually knew they were living [...]

  • Chinese director Jia Zhangke at the

    Iconic Chinese Auteur Jia Zhangke Touts Trio of Projects at Pingyao

    No one attending the Pingyao International Film Festival can escape learning about Jia Zhangke’s upcoming projects, with the same three trailers for them playing before each and every screening. The art house icon-turned-businessman’s presence looms large over the event he founded in his home province.  First off, there is a new collaboration between Jia and [...]

More From Our Brands

Access exclusive content