Hasbro in talks to acquire "Shrek" studio DreamWorks Animation DreamWorks Animation produced the 'Shrek' films Hasbro is in talks to buy DreamWorks Animation, in a deal that would unite the Hollywood studio that produced the Shrek and Kung Fu Panda films with the toymaker behind Monopoly, Twister and My Little Pony. DWA has explored a sale with several potential suitors , including SoftBank, the Japanese technology group founded by Masayoshi Son. But those talks fell apart, leading to Hasbro's emergence as a possible buyer. DWA and Hasbro have agreed the basic outline of a deal with the price likely to exceed $30 a share - a 35 per cent premium to DWA's closing price on Wednesday - according to a person close to the situation. The company has a market capitalisation of $1.9bn. However, the person cautioned that discussions were at a preliminary stage. The prospective deal would combine DWA's Hollywood production assets and film library with a toy and consumer products group that has a rich library of intellectual property. Hollywood studios have plundered toy brands for movie ideas in recent years: some, such as Transformers, have become profitable franchises, generating billions of dollars, while others, such as Battleship, were box office flops. DWA was spun out of DreamWorks, the studio started by David Geffen, Steven Spielberg and Jeffrey Katzenberg, in 2004. Mr Katzenberg, DWA's chief executive - and one of US President Barack Obama's biggest fundraisers - has actively sought a buyer on multiple occasions over the past few years. Mr Katzenberg would remain with DWA, assuming a deal goes ahead, said a person familiar with the matter. DWA has scored some of Hollywood's biggest animated hits and has blazed a trail in China, striking a deal to build a $2.4bn entertainment complex in Shanghai and forming a joint venture with three state-owned media companies to produce film and television series in the country. It has also suffered its share of missteps, taking writedowns on three of its recent films: Rise of the Guardians, Turbo and Mr Peabody and Sherman. The company has also moved into digital distribution, acquiring AwesomenessTV, a YouTube network that produces and aggregates programming for children. Hasbro, meanwhile, has diversified beyond its core toy business. The company struck a partnership in 2010 with Discovery Communications to create a cable channel - The Hub - aimed at children. The channel was recently rebranded Discovery Family Channel, with Discovery providing more programming in evening hours, although Hasbro has retained its stake in the venture. News of the talks between Hasbro and DWA was first reported by the Deadline website.