**SoftBank silent on rumored DreamWorks bid Japanese telecoms giant SoftBank has refused to comment on a reported bid to take over renowned Hollywood filmmakers DreamWorks Animation. The reported negotiations were said to value DreamWorks at over $3 billion.** When trading opened in Tokyo on Monday, SoftBank refused to be drawn on US media reports that it was in talks to acquire the DreamWorks animated film company behind productions like Shrek and Madagascar. We wont comment on speculations and rumors, a company spokesman told the AFP news agency, batting away a similar enquiry from Reuters. Japanese business daily Nikkei cited an unnamed SoftBank official as admitting it is true that there was contact between the two companies, but also saying the deal was unlikely to be reached. SoftBanks shares climbed 1.49 percent in early trading in Tokyo, as the markets opened buoyantly despite protests in Hong Kong. US-based entertainment trade publication The Hollywood Reporter first reported the supposed takeover talks; Variety and The Wall Street Journal also carried the story. The Hollywood Reporter said that SoftBank had offered $32 (25.2 euros) per share, a considerable premium on the stocks closing price on Friday of $22.36. That would have valued DreamWorks at around $3.4 billion. Risk taker The cash-rich Japanese telecoms giant run by Masayoshi Son (pictured at top of article) is known for a bold willingness to take bets on combining seemingly disparate businesses. As a major shareholder in Chinese e-commerce giant Alibaba, SoftBank recently netted a $4.6-billion gain by diluting its share of investment in the company when Alibaba launched on the New York Stock Exchange. SoftBank was also recently forced to abandon its pursuit of cellphone carrier T-Mobile US, in the face of opposition from anti-trust regulators in the US. DreamWorks, based in Glendale, California, has been struggling in recent months, logging a 37-percent drop in share prices this year. The company, run by veteran Hollywood producer Jeffrey Katzenberg, has logged two consecutive quarterly losses and has struggled to match past box office successes with more recent films like Mr. Peabody & Sherman or Turbo. Only one Japanese company has ever bought a Hollywood studio; Sony purchased Colombia Pictures in 1989. msh/slk (AFP, Reuters)
Posted on: Mon, 29 Sep 2014 05:18:32 +0000
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