Nanci Hellmich

USA TODAY

DreamWorks Animation (DWA) soared 14% to $25.52 Thursday on reports that toymaker Hasbro (HAS) is in talks to acquire the film studio.

DreamWorks is known for such animated movie franchises as Shrek and Madagascar.

The New York Times, citing anonymous sources briefed on the talks, reported that Hasbro is in "advanced talks" with the film studio about a potential deal financed with a combination of cash and stock. A price has not been determined.

Hasbro fell 4.3% to $54.98.

According to Deadline.com, "DreamWorks Animation is deeply engaged in two potentially game changing negotiations that could transform the company — including one with Hasbro to forge a family entertainment powerhouse to be called DreamWorks-Hasbro. The other talks are with Hearst to turn DWA's AwesomenessTV into a joint venture."

DreamWorks CEO Jeffrey Katzenberg would become chairman of the combined compan, the website says.

In September, Japanese telecom giant SoftBank was reported to have held talks with DreamWorks, but the negotiations didn't lead to a public offer. SoftBank owns Sprint.

Hasbro and DreamWorks Animation declined to comment.

Toy analyst Margaret Whitfield says that "given the importance of the Disney relationship to Hasbro, I doubt the deal would proceed without first ensuring Disney had no objection. If bought, it would be another platform to transform its (Hasbro) many toy properties into entertainment brands as it has done with several studios."