After rumors of negotiations between the two went online last Wednesday, Hasbro reportedly ended talks with DreamWorks Animation for a potential merger after the DreamWorks Chief executive officer requested for a higher offer.
Walt Disney Company, which contributes 30 percent of Hasbro's business through product team-ups for Marvel superheroes and "Star Wars" also reportedly, did not want the merger to push through.
Hasbro's proposal is a combination of cash and stock, thought the exact price was not revealed.
However, Jeffrey Katzenberg, Chief Executive Officer of DreamWorks Animation is looking for over $35 a share, higher than what DreamWorks's stocks currently valued in the stock market.
Wall Street analysts also said that the price was too high in research notes published Thursday and Friday.
Shares in DreamWorks Animation closed on Wednesday at $22.37, giving the studio a market value of about $1.9 billion.
The following day after negotiations were leaked, the largest independent studio in Hollywood reported stock surge of over 14 percent to $25.52 per share.
On the other hand, Hasbro's shares went down more than 4 percent to $54.98 on Thursday, and further declined almost 1 percent today to $54.02 per share.
Because of that, the toymaker lost $300 million from its market capitalization which discouraged its board of directors to continue further negotiations.
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.
