DreamWorks surges in premarket trading on reports of talks with SoftBank

MarketsAssociated Press

Shares of DreamWorks are soaring in Monday premarket trading as media reports suggest the animation studio is in discussions with SoftBank Corp. about a possible deal.

Several reports over the weekend indicated that DreamWorks Animation SKG Inc. is in talks to potentially sell itself to Japan's SoftBank, or team up in some type of partnership.

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DreamWorks did not immediately respond to an email seeking comment. Some of its successful movies include "Shrek" and "Madagascar." But "How to Train Your Dragon 2," which was in theaters over the summer, did not do as well as anticipated. In the second quarter DreamWorks reported a loss and its revenue declined. The results missed analysts' expectations.

The Glendale, California, company's stock rose $6.09, or 27.2 percent, to $28.45 in premarket trading about two hours before the market open.