NEW YORK (TheStreet) -- Shares of DreamWorks Animation Inc. (DWA) are up 25.22% to $28 in pre-market trade after it was reported that the studio is in talks to sell the company to Japanese telecommunications firm SoftBank Corp., (SFTBF) , sources told the Los Angeles Times.
Jeffrey Katzenberg, CEO of the studio, has been in discussions to sell the company he launched 20 years ago to SoftBank, which owns Sprint Corp. (S) and recently dropped a bid to acquire T-Mobile (TMUS) .
The DreamWorks board held a meeting Thursday to consider an offer by SoftBank to buy DreamWorks for $32 a share, well above the company's current share price, which closed at $22.36 on Friday, sources said, according to the Times.
TheStreet Ratings team rates DREAMWORKS ANIMATION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DREAMWORKS ANIMATION INC (DWA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."