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DreamWorks shares jump 5 percent on takeover talk
SAN FRANCISCO |
SAN FRANCISCO (Reuters) - Shares in DreamWorks Animation SKG Inc spiked 5 percent on Monday on speculation it may become a takeover target, after Walt Disney Co said it will buy Marvel Entertainment.
Goldman Sachs raised its six-month price target on DreamWorks to $38 from $36. It also raised its chance of a "take-out" to 35 percent from 20 percent.
"We believe that today's announcement highlights the strategic value of key brands and pure-play content companies with established franchises to large entertainment companies," Goldman Sachs wrote.
"We did not view Disney as a potential acquirer of DreamWorks given its Pixar acquisition, but we continue to believe that DreamWorks would be attractive to other large entertainment companies (or a foreign studio) without CGI (computer-generated imagery) animation capabilities."
Disney plans to buy Marvel for $4 billion.
Shares in Glendale, California-based DreamWorks were up 4.8 percent at $33.22 on the Nasdaq.
(Reporting by Clare Baldwin; Editing by Derek Caney)
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