REPORT: TOY MAKER HASBRO TO BUY DWA

Toy manufacturer Hasbro is in advanced negotiations to purchase DreamWorks animation, the New York Times reported today (Thursday), citing people briefed on the matter. The newspaper noted that the talks are occurring a month after the collapse of a proposed merger between DWA and Japan’s SoftBank telecom company. Under the proposed deal, Hasbro would purchase DWA shares for about $30 per share in stock and cash, a significant premium over the $22.37 that DWA shares were listed for at the close of trading on Wednesday. (They jumped 16 percent in early trading today to $25.96.) If the deal is completed, Jeffrey Katzenberg, who founded the studio after it was spun off as a former division of DreamWorks SKG, would remain as head of the company, the Times report said. It also commented that Hasbro hopes that a deal with DWA would help it find a new market for its stable of toys, presumably meaning that it would expect the company to turn out new animated features about such toy products as Transformers, G.I. Joe and My Little Pony.