Reports of Merger Talks between DreamWorks Animation and Hasbro
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Reports from Deadline claim that the two companies toymaker Hasbro and DreamWorks is in a potential deal for a merger. Get ready for a new line of toothless and hiccup dolls. Hasbro is also the owner of forty percent of the channel Discovery Family. This merger creates the only studio to actually own a business in toy production. This will occur in a market where typically, studios license their TV and film properties to Hasbro or Mattel, its rival. Currently, Hasbro produces toys for the Star Wars franchise of Lucasfilms, Marvel and Disney. DreamWorks Animation is reportedly asking for $35 per share in the deal with Hasbro. Over the closing price of the studio on Wednesday, this is a 56.6 per cent premium. The studio has taken a beating this year despite the success over the animation How to Train Your Dragon 2 sequel. After the company took write downs on Mr. Peabody and Sherman, Turbo and Return of the Guardians, the shares of DreamWorks Animation lost about thirty seven per cent of the company value. In another possible deal, the studio might also sell stakes of Awesomeness TV to Hearst Publishing for $81. 5 million. This would put the value of Awesomeness TV to $300 million, which is twice what was paid for it in October of 2013 by DreamWorks in October. The deal terms see $81.25 million paid by Hearst for a fourth of a stake on the company with 25 million used as investments in Awesomeness TV and 25 directly going to DreamWorks Animation.