DreamWorks shares soar on report Hasbro may buy the company

Shares of DreamWorks Animation SKG soared Thursday after a report suggested toy company Hasbro is getting ready to make an offer to buy the movie studio.

The New York Times reported that Hasbro is in "advanced talks" with DreamWorks for a takeover bid. The newspaper cited anonymous sources familiar with the negoatiations.

Both companies said they don't comment on rumour and speculation, but the prospect was enough to push shares in DreamWorks 16 per cent higher on thew New York Stock Exchange. Hasbro shares declined, but it's common for the company doing the buying to decline as a first reaction to any takeover news.

Two months ago, DreamWorks was in negotiations with Japanese conglomerate SoftBank about a deal, but it's believed those talks were limited to some sort of partnership — not an outright takeover.

California-based DreamWorks has made a fortune with kids movie franchises like Shrek and Madagascar.