Dreamworks Animation Soars 20% As WSJ Reports Of Potential Buyout

Shares of

Dreamworks Animation Skg IncDWA

soared higher by more than 20 percent early Wednesday morning after The Wall Street Journal reported the company is being eyed as a potential acquisition target.

The Wall Street Journal, citing "people familiar with the matter," stated that Comcast Corporation CMCSA is in talks to acquire the movie studio for more than $3 billion. The publication noted that Comcast's own movie studio, Universal Pictures, has seen recent success in animated films but it remains a "relatively small player." The price tag on a deal is said to be more than $3 billion, a premium to Dreamworks' $2.34 billion valuation as of Tuesday's market close. Dreamworks' portfolio of franchises include "Shrek," "Kung Fu Panda," "Madagascar," among others. Comcast can leverage the success of these franchises and follow Walt Disney Co DIS's strategy of building out consumer products and theme parks, The Wall Street Journal suggested. Dreamworks has been shopping for a sale of itself for several years. In 2014, the company was

said to be in talks

with

Hasbro, Inc.HAS

Shares of Comcast were trading higher by more than 2 percent Wednesday morning following a top and bottom line beat in its first quarter results.

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