Talks were just made public on Wednesday and came to a quick end on Friday. Although DreamWorks Animation is reputable and has great worth, it is a risk to acquire. While the stock market tells the tale of a hard week, there is no knowing when shares will reach the target price Hasbro was aiming for.
Dreamworks
On Thursday alone DreamWorks lost a frustrating $300 million in capital. After the announcement on Friday the stocks fell quickly. Ending the day at an astronomically low price of less than $2 a share, it did not come close to the $30 to $35 a share DreamWorks was negotiating for.
DreamWorks has been on the look for a buyer since at least September, as far as the public knows. Hasbro took the opportunity to make a deal as earlier prospects fell through. With great movies comes great responsibility. Unfortunately DreamWorks does not turn out movies on a consistent schedule, which brings in another risk factor; although when they do they are high grossing and often turn into a conglomerate of sales including games, toys, book, and more. When the stock market speaks, Hasbro listens.