SoftBank Corp., a Japanese telecommunications and internet company, reportedly wants to buy DreamWorks Animation, the company that has produced Shrek, Kung Fu Panda, and Rise of the Guardians.
Almost a year since the company started searching for possible buyers, an insider said that the Japanese telecomm giant is pursuing the animation company. Hollywood Reporter first revealed the news, saying that the deal would amount to $3.4 billion.
According to the acquisition officer, DreamWorks Animation's founder and CEO Jeffrey Katzenberg would sign a five-year contract to stay with the company. They reportedly had an emergency meeting on Thursday to discuss the offer. It is said that Softbank offers a $32 a share, while DWA's stocks closed at $22 a share on Friday.
When asked about the rumor, DWA's spokeswoman, Allison Rawlings, said, "We don't comment on rumor and speculation."
The company has been struggling financially, reporting two consecutive quarter losses. DreamWorks reportedly lost $15.4 million compared to the profits last year. Katzenberg has long been looking for a buyer for the animation company. The reason cited why negotiations fail to push through is because Katzenberg is asking for too much.
Based in Glendale, California, DWA has been planning for expansion, with projects extending outside the realms of film. A DreamHouse is in the works, where the company aims to change the way children celebrates Christmas with Santa. Multiple business ventures are also underway in China with Chinese business partners.
DreamWorks Animation studio is considered Hollywood's smallest movie studio, only releasing two to three films every year. The company has recent hits like The Croods and How to Train Your Dragon 2, but some recent releases have been dud such as Rise of the Guardians and Mr. Peabody & Sherman.
SoftBanks is recently on the news for buying a $20-million share on the $60-billion company, Alibaba. It makes the Japanese conglomerate Alibaba's biggest shareholder.
