Comcast (CMCSA) Offers $3.8 billion for DreamWorks (DWA) – Good or Bad?

Comments:  Comcast has offered $3.8 billion for the production company DreamWorks. This represents nearly a 10% premium for DreamWorks on a stock that is already at 151.8% FV. If Comcast were at a higher valuation it might be a reasonable acquisition, but the stock is only at 104.5% FV. This appears to be a high premium to pay for a company that creates beloved characters, but not box-office runaway hits. I don’t believe Comcast will be able to duplicate the resource library Walt Disney is creating with Marvel and Lucas.

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By | 2016-05-09T09:53:48+00:00 May 9th, 2016|Categories: Money Basics|Tags: , , , |0 Comments

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