Reports from the US suggest firm could be acquired for over $150 million.
Dreamworks Animation is reportedly in talks to acquire Classic Media.
According to a blog post on the New York Times, Dreamworks is the lead bidder for the firm, having offered more than $150 million.
Other reports have also surfaced on Variety and C21. No comment has been made by either Dreamworks or Classic Media.
Classic's portfolio includes such brands as Casper the Friendly Ghost, Where's Wally?, Voltron and He-Man and the Masters of the Universe. It also owns Veggie Tales producer, Big Idea Entertainment.
Back in March, the firm also picked up licensing rights to the Noddy and Olivia properties from Chorion.
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