Dreaming of DreamWorks Animation

There is speculation that Japan’s SoftBank Corp will acquire DreamWorks Animation SKG, the Hollywood studio behind hits such as “Shrek” and “Madagascar.” The talks between the two were first reported by the Hollywood Reporter which quoted a source as saying the buyout would value DreamWorks at $3.4 billion.

Hollywood Reporter said that SoftBank had offered $32 per share for DreamWorks, a dramatic offer when Friday’s closing price was $22.36.

If SoftBank picks up DreamWorks, they will become the second Japanese technology company to buy a Hollywood studio, after Sony Corp bought Columbia Pictures in 1989.

SoftBank has stakes in many large listed companies including US mobile carrier Sprint, internet portal Yahoo Japan and onli8ne game maker GungHo Online Entertainment.

Time will tell if the deal goes through – but it’s certainly worth having our eyes on these two companies.