Rumors bring Results: The rumors about SoftBank Corp buying Dreamworks Animation made it so that Dreamworks is up 30% in today’s pre-market trading.
As far as the pre-market is concerned, Dreamwors Animation Skg Inc (NASDAQ: DWA) is up 30%, probably because of the rumors it will be acquired by the Internet and Telecommunications giant, the Japanese SoftBank Corporation.
Reportedly, SoftBank Corporation is aggressively bidding to acquire a content creation foothold in the United States – and the bidding must be taken seriously as the company wields an availability of roughly $17 billion dollars.
The deal we’re talking about is the acquisition of Dreamworks, now valued at $3.4 billion dollars, getting translated into $32 per share – a premium of over 40% in Friday’s closing price.
If the purchase goes through, this is going to be the second famous American studio to be purchased by the Japanese since in 1989, Columbia Pictures was taken over by Sony Corp.
SoftBank also has a stake in Alibaba Group Holding Ltd, and it isn’t a small one either. Numbers currently point out to a stake valued at over $70 billion dollars, making the Internet giant the biggest Alibaba shareholder as of now.
Other companies in SoftBank’s portfolio are Yahoo Japan, GungHo Online Entertainment and Sprint Corporation. The company has failed acquiring T-Mobile Us Inc simply due to US Anti-Trust regulations.
Even though Dreamworks Animation is a small studio publishing a couple of pieces per year, its owner thinks it is worth just as much as the studio’s biggest competitor – Pixar.
Dreamworks produced “Madagascar”, “Shrek” and “Kung Fu Panda”.
Seems like SoftBank might bring in funds to make Dreamworks become a global brand with television networks, merchandising and theme parks, so it might be pretty good news for investors.