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SoftBank buyout may help DreamWorks Animation boost box office sales

SoftBank acquiring DreamWorks Animation would give the small animation studio much-needed budget and a buffer in case a movie doesn't do well
By: Michael Hatamoto | Business, Financial & Legal News | Posted: Sep 30, 2014 12:30 am

Following news that DreamWorks Animation is considering a sale to Japanese company SoftBank has created quiet optimism that this could help the studio long-term. The proposed $3.4 billion deal, with SoftBank offering $32 per share, would be able to give DreamWorks long-term financial stability that it needs to continue developing up to three new films per year.




Despite being known for "Shrek" and "Madagascar," the studio struggled with disappointing sales of "Rise of the Guardians" and "Turbo." Operating as a smaller, independent studio prevented the company from having a buffer - every new film must be a box office hit, or the company would feel it - though backing from a company such as SoftBank would help create new opportunities.


"I think they are sort of doing a 21st century version of what Disney did in the 1950s, when they went from being just an animation studio to doing living action," said Steve Hulett, Animation Guild business agent, in a recent statement to the Los Angeles Times. "They diversified, and that's the only thing you can do if you want to be a long-term player. Now it probably makes sense to sell."


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