Japan's SoftBank bidding for DreamWorks Animation: report

Japanese telecommunications group SoftBank is in talks to buy DreamWorks Animation, the biggest independent animated film studio in Hollywood, in a deal valuing the company at $3.4 billion, The Hollywood Reporter said.

Under the agreement, DWA founder and CEO Jeffrey Katzenberg would sign a five-year contract to remain with the company, the report in the trade publication said.

It noted that the DWA board held an emergency meeting Thursday to consider the offer, under which SoftBank proposed $32 a share, a significant premium over the stock's value of $22 per share at closing Friday.

DWA was launched as the animation division of DreamWorks Studios and then became a public company in 2004. It now releases its movies through 20th Century Fox.

Two of its biggest franchise hits have been the "Shrek" and "How to Train Your Dragon" series.