Japanese conglomerate SoftBank is reportedly in talks to acquire DreamWorks Animation in a deal valuing the company at $3.4 billion.
Japanese conglomerate SoftBank is reportedly in talks to acquire DreamWorks Animation in a deal that would value the company at $3.4 billion, according to The Hollywood Reporter.
The DWA board held an emergency meeting last week to consider the offer. SoftBank is said to have offered $32 a share, and DWA founder and CEO Jeffrey Katzenberg would sign a five-year contract to remain with the company. DreamWorks Animation stock closed at $22 per share on Friday.
Former Google executive Nikesh Arora, who joined SoftBank in July, is said to have been a liaison between DWA and his new firm. Arora is the head of a newly formed unit, SoftBank Internet and Media Inc.
THR reports that Katzenberg has long sought a buyer for his company, which began as the animation division of DreamWorks Studios and was spun off as a public company in 2004. DWA currently releases its movies through 20th Century Fox.
DreamWorks Animation has reported losses for the last two quarters. The company's 2014 releases include Mr. Peabody & Sherman, which grossed $273 million worldwide, and How to Train Your Dragon 2, which made $611 million.