Shrek maker Dreamworks sees share price soar after news Comcast is considering $3bn takeover bid

William Turvill
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Shrek poses after being honored by a Sta
In addition to Shrek, Dreamworks also makes Kung Fu Panda (Source: Getty)

Shares in Dreamworks were up by more than 15 per cent on Wednesday after it emerged Comcast is considering a takeover of the company.

Shares in Comcast, the creator of the Despicable Me and Minions films, were also up slightly following the news.

Read more: Comcast pours cold water on ITV takeover talks

Comcast is in talks to buy Dreamworks for more than $3bn (£2.1bn) in a deal that could create a company to rival Walt Disney, according to the Wall Street Journal.

Dreamworks, the maker of Shrek and Kung Fu Panda, currently has a market cap of $2.3bn.

On Wednesday morning in the US, Dreamworks' share price was up 15 per cent to $31.20. At the same time, Comcast's share price was up 2.5 per cent at $62.55.

Read more: EOne partners with Spielberg's Dreamworks

In December, Comcast's entertainment arm NBCUniversal was linked with a bid for ITV.

But Comcast later ruled out a move, saying: "We don’t comment on M&A rumours, but the speculation on ITV is just completely inaccurate."

Comcast also today reported better-than-expected results for the first quarter of 2016. Earnings per share were $0.84, above analysts' projections of $0.79, according to Bloomberg.

Both companies have been asked for comment.

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