The Hasbro giveth, and the Hasbro taketh away. Just days after it was revealed that toymaker Hasbro was engaged in talks to purchase DreamWorks Animation, the negotations ended abruptly. The Hollywood Reporter first reported this development.
News of the merger negotiations boosted DreamWorks stock 14% this week, but Hasbro shares dropped 6%, erasing approximately $450 million of value from the company. General consensus in the finance world was that DreamWorks’s $35-per-share asking price was inflated and made no financial sense for the toymaker. Hasbro’s stock free-fall is said to have influenced its board to halt negotiations. (In after-hours trading last night, after news that talks had ended, DreamWorks stock dropped nearly 10% while Hasbro gained around 3%.)