MUMBAI: DreamWorks Animation has emerged as the lead contender to acquire American animation company Classic Media.

Classic owns and manages a globally-recognised portfolio of well-known family and pop culture entertainment brands, including Casper the Friendly Ghost, Where?s Waldo?, Lassie, The Lone Ranger, Postman Pat and George of the Jungle.

According reports, DreamWorks Animation has outbid others in the fray by offering over $150 million. The high valuation is believed to have prompted other propsective buyers from dropping off the sales process.

The Classic Media acquisition, if it goes through, will give DreamWorks Animation the much needed source material to produce movies.

However, the acquisition might not solve all its problems since Classic Media does not control all the rights for its properties that it has in its portfolio.

Walt Disney Studios, for instance, is producing a $225 million remake of ?The Lone Ranger". However, the licensing and merchandise rights arrangement between Disney and Classic for the film is not clear.