(Reuters) - SoftBank Corp’s (9984.T) talks to acquire Hollywood studio DreamWorks Animation SKG Inc DWA.O have cooled, a SoftBank source and banking sources in Japan said.
DreamWorks Animation shares were down about 9 percent in extended trading on Monday. The shares had risen about 26 percent to close at $28.18 during market hours on reports that SoftBank was in talks to acquire the company.
A SoftBank source said talks had taken place with DreamWorks Animation but they did not appear to be going anywhere.
Two bankers at separate institutions in Japan said SoftBank’s interest had cooled even before media reports emerged over the weekend about the discussions, with one citing price as a dissuading factor.
“Their interest briefly picked up, but the price being what it was, it has now cooled,” one of the sources said.
The Wall Street Journal reported on Monday that SoftBank's talks had cooled but that it was possible talks could restart, with the two sides striking a deal other than an outright takeover, possibly some kind of content partnership. (on.wsj.com/YIaXt0)
DreamWorks Animation spokeswoman Allison Rawlings said the company will not comment on market rumors.
Reporting By Sai Sachin R in Bangalore; Yoshiyasu Shida and Taiga Uranaka in Tokyo; Editing by Anil D'Silva and Ryan Woo