Softbank Corp (OTCMKTS:SFTBY) out to acquire Dreamworks Animation Skg Inc (NASDAQ:DWA)

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The rumor was going around the internet for quite some time now that Softbank Corp. (OTCMKTS:SFTBY) was interested in buying Dreamworks Animation Skg Inc. (NASDAQ:DWA). The rumor turned out to be a fact when sources from the inside confirmed that indeed negotiations were being held between the two parties and a possible acquisition by Softbank Corp. (OTCMKTS:SFTBY) of the animation and graphics company Dreamworks Animation Skg Inc. (NASDAQ:DWA) is highly likely.

Softbank Corp. (OTCMKTS:SFTBY) is reportedly making a strategy to woo potential mobile subscribers through content makers; and that is where Dreamworks Animation Skg Inc (NASDAQ:DWA) fits in. It’s a smarter step as compared to directly expanding to telecommunications network.

Softbank Corp (OTCMKTS:SFTBY) already owns Sprint and had also placed a bid for T-Mobile – only to withdraw it later on because of antitrust concerns. As for Dreamworks Animation Skg Inc. (NASDAQ:DWA), they are known to make good money on an annual basis but during this time they also come across many scrawny patches. Softbank Corp. (OTCMKTS:SFTBY) is poised to take over Dreamworks Animation Skg Inc. (NASDAQ:DWA) and the reports are that the offer made is quite high and twice the amount expected.

Softbank Corp. (OTCMKTS:SFTBY) also owns 32 percent of Alibaba, which breeds large revenue. Hence Softbank’s (OTCMKTS:SFTBY) acquisition offer for Dreamworks Animation Skg Inc. (NASDAQ:DWA) is justified – the former can handle the price.

The market value of Dreamworks Animation Skg Inc. (NASDAQ:DWA) is currently $2 billion, but the offer is not being disclosed for official reasons. The acquisition could go great for Dreamworks Animation Skg Inc. (NASDAQ:DWA) as they have long suffered as a small scale publicly traded animation and graphics Company. Being acquired by a big conglomerate like Softbank Corp (OTCMKTS:SFTBY) will relieve them of investor pressure and bring them immense credibility.

The studio has given off some of the box office beasts the Shrek series and Madagascar movies. Recently it has been on a downward spiral with movies like Rise of the Guardians and Turbo – not making much money on the box office.

Dreamworks Animation Skg Inc. (NASDAQ:DWA) is also facing serious competition from Illumination Studios of Despicable Me; and also from Ice Age’s producer Blue Sky Studios. Both these movies have made large box office numbers while their budgets were lower than Dreamworks (NASDAQ:DWA) movies.

Dreamworks Animation Skg Inc.’s (NASDAQ:DWA) price target was only $22.11, but they have been offered around $32 per share; which is 10 percent more. Consequently, tech bloggers and market analysts are already making their voices heard; claiming Softbank Corp. (OTCMKTS:SFTBY) is being overly ambitious and greedy.

The CEO of Softbank Corp. (OTCMKTS:SFTBY) has already expressed his desire of seeing his company become the largest and the most credible force in the market. The market value he is aiming for is ¥200 trillion, which won’t be impossible if deals like these pay off.

Speaking of overly priced deals, Google Inc. (NASDAQ:GOOGL) had bought Youtube ten times over its real prize even though Google knew it would have to fight off piracy issues; now almost 10 percent of Google Inc. (NASDAQ:GOOGL)’s revenue is coming on Youtube’s behest.

So it can be said that Softbank Corp. (OTCMKTS:SFTBY) acquisition of Dreamworks Animation Skg Inc.’s (NASDAQ:DWA) won’t be that ambitious after all.

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