Comcast Offers $3.8 billion for DreamWorks – Good or Bad?
Part II – DreamWorks Moves to SELL Consideration

Comments:  Comcast (CMCSA) has offered $3.8 billion for the production company DreamWorks (DWA). This represents nearly a 10% premium for DreamWorks on a stock that is already at 151.4% FV. If Comcast were at a higher valuation it might be a reasonable acquisition, but the stock is only at 105.6% FV which is an improvement from a few days ago, but not enough.

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. Because the valuations have not moved favorably DearmWorks has been moved from the SELL WATCH list to the SELL list.

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