NEW YORK (TheStreet) -- Dreamworks Animation (DWA) shares are down 14.9% to $22.15 in early market trading on Monday following reports that the entertainment company's merger negotiations with toy company Hasbro (HAS) have stalled, according to multiple media outlets.
The main sticking point holding up the negotiations is the corporate structure the combined company would have if the merger were to go through, according to Reuters.
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Sources told the news organization that although presentations were made by both companies on Friday the purchase price was never discussed.
There had reports early last week suggesting that DreamWorks' asking price was in the $2 billion to $3 billion range, according to the Wall Street Journal.
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. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."