NEW YORK (TheStreet) -- Shares of Hasbro (HAS) are sinking, down 5.35% to $54.40 in late morning trading Thursday, after it was reported that the toymaker is in talks to buy Hollywood studio DreamWorks Animation SKG (DWA) , sources told The New York Times.
The exact price of the acquisition has not been determined and the negotiations are still continuing, but under the proposed deal, Hasbro would pay a mix of cash and stock, the Times added.
The Pawtucket, RI-based Hasbro has a 40% stake in the Discovery Family Channel, and has lent its products to films including "Transformers: Age of Extinction" the top-grossing film worldwide this year, Bloomberg reports.
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Separately, TheStreet Ratings team rates HASBRO INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HASBRO INC (HAS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."