Point.360 (PTSX) Soars As Deal with DG FastChannel (DGIT) Finally Inked

Shareholders of Point.360 (Nasdaq: PTSX), a stock we've been tracking, were rewarded today after DG FastChannel, Inc. (Nasdaq: DGIT) entered into an agreement whereby (i) Point.360 will spin off its post production operations to Point.360 stockholders and (ii) DG FastChannel will acquire Point.360's Ads distribution operations.

We first noted DG FastChannel's position in Point.360 on December 28, 2006 after the company acquired a large stake from Point.360 shareholder Midwood Capital. We also updated the developments in several follow-up reports. DG FastChannel was aggressively raising its stake in Point.360 which stirred rumors of a buyout.

Shares of Point.360 are up 40% today to $5.18 on the news.