Dreamworks Animation and Hasbro in merger talks to create a new entity named "Dreamworks-Hasbro"

[grim22]

http://deadline.com/2014/11/dreamworks-animation-hasbro-merger-negotiations-in-works-1201282751/

 

EXCLUSIVE: DreamWorks Animation is deeply engaged in two potentially game changing negotiations that could transform the company — including one withHasbro to forge a family entertainment powerhouse to be called DreamWorks-Hasbro. The other talks are with Hearst to turn DWA’s AwesomenessTV into a joint venture. We’re told that a DWA and Hasbro deal is at least 60 days off, if it happens. But the two companies are said to have agreed that Jeffrey Katzenberg would chair the combined operation. The Hasbro board visited the DWA campus recently, following a similar visit in late October by Hasbro CEO Brian Goldner and his management team to discuss potential film, TV, and consumer product synergies.

With an eye to combining and beneficially expanding the diversification that both companies have pursued of late, the DWA CEO is said to be looking for Hasbro to pay $35 a share in a potential deal. That would be a 56.5% premium over DWA’s closing price on Wednesday but a hair less than its 52-week high from January of $36.01.
 

Hasbro has made it clear that it wants to be a leader in family entertainment, a fertile ground to promote games and toys including itsTransformers property. Today it promoted Stephen Davis to the newly created role of EVP-Chief Content Officer, responsible for developing content for Hasbro’s brands across multiple platforms. The toy maker owns 40% of Discovery Family, known until last month as children’s channel The Hub. Meanwhile, Hasbro awaits the outcome of a trial over who owns the movie rights to its highly valued Dungeons & Dragonsgame. If that case goes the toy company’s way, it looks to make a D&D picture with Universal.

 

[CloneWars]

I don't see how this benefits Hasbro. WB or Disney buying them out makes more sense actually.

 

Also, I see Hasbro losing their Disney licenses like Marvel and SW if this merger happens. That leaves DW with G.I. Joe, My Little Pony, and Transformers which they already get a cut off the movie merchandise. Mattel has the girl market cornered with Barbie. So, yah, this seems like a bad deal.

Edited November 13, 2014 by CloneWars

[TServo2049]

I wonder if this deal would mean they'd have to sell the 80s He-Man cartoon rights to Mattel...

[Sir Tiki]

Potential details of the deal:

 

Shares of DreamWorks Animation surged in pre-market trading Thursday after news broke that the film studio and Hasbro are in talks to merge.

 

DreamWorks Animation shares soared more than 20% to over $27. The company had closed trading Wednesday at $22.37. Hasbro’s stock took a hit, however, dropping 2.12% to $56.24 before markets opened.

 

Under the proposed deal, Hasbro would pay roughly $35 a share for DreamWorks Animation and CEO Jeffrey Katzenberg would become chairman of the combined company, sources tell Variety.

 

That’s not the only deal in the works. DreamWorks Animation may also sell a stake in AwesomenessTV to Hearst Publishing for $81.5 million. It bought the YouTube and television company for $33 million in 2013.

 

http://variety.com/2014/film/news/dreamworks-animation-stocks-surge-over-possible-hasbro-merger-1201355525/

Edited November 13, 2014 by Sir Tiki

[Jonwo]

DWA being bought will mean the end of them as an independent studio and rather a subsidy of a larger company. TBH I've alway thought Katzenberg was way too ambitious with how DWA could grow when it only relies on animated films and their characters and their film slate is overkill.

 

I do think Warner Bros would have been a better fit given they have such a great animation legacy but I think they've alway ruled it out.