[TFW2005]

Originally posted by: SilverOptimus @ TFW2005.com

Quote:

Hasbro has ended talks with DreamWorks Animation regarding their potential merger. It is said that a sudden drop of Market Share after the rumor has scared the Transformers Toy Maker to say "No" to the proposed merger. Disney; who roughly own 30% of Hasbro's business, also expressed a negative reaction to the deal.

"The breakup of the negotiations followed a sharp slide in Hasbro‘s shares after reports of the talks emerged late Wednesday. The toy maker’s shares had fallen nearly 5 percent since then, closing on Friday at $54.02. The fall in Hasbro’s share price was notable because the company had weighed paying both stock and cash, people briefed on the matter have said.

Also playing a role was a negative private reaction by the Walt Disney Company, which comprises roughly 30 percent of Hasbro’s business through licenses for “Star Wars,” Marvel characters, “Frozen” and the Disney Princesses toy line.

Disney was predictably upset that Hasbro would discuss a merger with DreamWorks Animation — its primary cartoon competitor — only weeks after the toy maker was given a lucrative Princesses contract, having taken it away from Mattel, one of these people said. As a toy partner, Hasbro receives early access to private information about films in Disney’s pipeline."

Original Source: DWA-Hasbro Merger Is In The Trash Can @ Transformers - TFW2005.com.