Monday, January 25, 2021

WALL STREET COMES TO GRIPS WITH THURSDAY’S TOY STORY

November 14, 2014 by · Leave a Comment 

DreamWorks Animation’s stock soared and Hasbro stock sank on Thursday in the wake of reports that the two companies were in advanced talks on a deal that would see the toy maker acquiring the studio for about $3 billion — or roughly $30 per share, representing a significant premium on DWA shares that were listed at $22.37 before the reports, which first appeared in the New York Times, hit the Web. By the end of the day, DWA shares had shot up 14.1 percent to $25.52 (and were at $26.15 at midday today) while Hasbro shares were hammered, falling 4.3 percent to $54.98 (unchanged today). While some analysts had observed that the deal would give Hasbro a direct way to market many of its toy products, such as Transformers, G.I. Joe, and My Little Pony, others noted that the deal could put its current deals with Disney groups Disney Animation, Marvel and Lucasfilm at risk. For DWA chief Jeffrey Katzenberg it was no doubt another day when he was left pinching himself to make sure that his good fortune was real. He had previously remarked about how lucky he had been to have been brought into the original DreamWorks SKG triumvirate after he had been fired by Disney 20 years ago. Thursday’s rise in DWA shares, the New York Daily Post duly noted today (Friday), gave Katzenberg a one-day paper profit of $3.5 million on his 1.1 million DWA shares.