Toymaker Hasbro is planning to buy DreamWorks Animation in order to extend its products to the big screen.
After another potential buyer, Japanese telecommunications company SoftBank also approached the California-based animation studio back in September.
Meanwhile, Hasbro's deal is a combination of cash and stock, thought he exact price still remains undisclosed. However, Jeffrey Katzenberg, chief executive of DreamWorks Animation is looking for over $30 a share, higher than what DreamWorks's stocks currently valued in the stock market.
Shares in DreamWorks Animation closed on Wednesday at $22.37, giving the studio a market value of about $1.9 billion. Hasbro's stock closed on Wednesday at $57.47 a share, giving it a market value of about $7.2 billion.
Hasbro, the second biggest toymaker in the United States hopes to find a new market for its toys including G.I. Joe, Transformers and My Little Pony.
Brian Goldner, Hasbro's chief executive pushed efforts to transform the brand into a global entertainment titan, building its own studio in 2009 to produce movies and television shows.
Lego Group, for example, started out as an iconic plastic toy bricks that spawned several Lego video games, Lego TV series and even LEGOLAND theme parks. Its latest venture was a team-up with Warner Bros. for "The Lego Movie," which raked in $468.1 million across the globe.
Hasbro's "Transformers" movie franchise was also a major blockbuster hit, amassing $3.8 billion in ticket sales across the globe.
Horror movie "Ouija," a play on the classic Hasbro board game grabbed $57.9 million, despite only costing the company $5 million to make.
Meanwhile, DreamWorks Animations would be getting a much needed boost after falling short with its films "Turbo," "Rise of the Guardians," and "How to Train Your Dragon 2." DreamWorks Animation reported two straight quarterly losses. Aside from that, from the stock's peak back in 2010, the studio's stock price has declined 49 percent.
Hasbro's toys, which are familiar to children, would give the studio a boost when it comes to stimulating interest in a related movie.
