According to a report in The Wall Street Journal, SoftBank's desire to acquire DreamWorks may be headed to the deep freeze. This comes just two days after the entertainment industry got hit with this juicy tidbit that the two parties were in deal talks, sending DreamWorks' stock soaring 26% to close at $28.18 on Monday.
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But in after-hours trading, shares of DreamWorks tumbled 7.4% to $26.09 as investors keyed into this Hollywood gossip. The talks were said to still be on as of Saturday. The Journal notes that it wasn't immediately clear why the buyout talks stalled and whether they will be resumed at a later date or if the deal itself will morph into a different arrangement, such as a content partnership.
One Wall Street analyst had told the Journal that SoftBank could be interested in DreamWorks' library of movies and its related franchise for the characters in those movies, such as Shrek. SoftBank's ultimate goal with a DreamWorks deal could be to steer a youthful audience towards its Sprint (S) operation.
At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.