Shares of the Glendale, Calif. based animation studio were trading at $22.66, close to their value on Wednesday when news broke that Hasbro was considering purchasing the company behind “Shrek” and “Kung Fu Panda.”
Hasbro investors appeared pleased that the talks had fizzled. Shares of the Pawtucket, Rhode Island based toymaker climbed 4.4% in pre-market trading to $56.40. Analysts questioned the wisdom of Hasbro’s plans to purchase DreamWorks Animation, noting that the movie studio has endured three write-downs from its past four films. Hasbro’s stock plunged as a result, falling 4% on Thursday to $54.98 and slipping an additional 1.7% on Friday to $54.02.
DreamWorks Animation had been looking for a deal that was a mixture of cash and stock. It wanted Hasbro to pay more than $30 a share for rights to the studio. Earlier merger talks with Japanese technology giant SoftBank collapsed in September over differences in valuation.