<div id="subtitle">Analyst downgrades DreamWorks Animation, poking hole in acquisition speculation</div><div><p>An analyst downgraded the shares of DreamWorks Animation SKG Inc. on Wednesday, saying speculation it would be bought by a media giant was unfounded.</p><p>David Miller of Caris & Co. said DreamWorks experienced a 13 percent increase in its share price following the announcement last week that The Walt Disney Co. would buy Marvel Entertainment Inc.</p><p>Live-action boutique studio Lions Gate Entertainment Corp. has also been the subject of buyout speculation.</p><p>"Neither is likely to be acquired in the near term, at least in our opinion," Miller wrote in a research note. "Once the helium leaks out, we believe DreamWorks Animation should trade around ... $27 per share."</p><p>Miller lowered the rating on the company to "below average" from "average" and set a price target of $27, up from $24 earlier.</p><p>Shares were down 39 cents, or 1.1 percent, at $34.61 in afternoon trade Wednesday.</p><p>Miller said of the possible buyers, CBS Corp. does not have complimentary assets, News Corp. already owns animation studio Blue Sky, and Viacom Inc. doesn't have the cash.</p><p>Time Warner Inc., with $7 billion in cash, could buy the company, he said, but it would cost more than $3 billion if Marvel's valuation were applied to DreamWorks. Also, $2 billion of Time Warner's cash is already earmarked for debt service before the end of the year.</p><p>"Should Time Warner give up its promise of higher dividends and more aggressive stock buybacks in favor of blowing more than half its cash hoard on acquiring a franchise animation studio? We don't think so," he wrote.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=58383962&bid=informcom" /></div><div id="copyright"><div>

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