Japanese Telco/Internet company SoftBank has backed out of from an active discussion to buy DreamWorks Animation; however, sources revealed that the Japanese giant has now diverted its attention to Legendary Pictures.

After talks between DreamWorks Animation and SoftBank cooled off, SoftBank is now thinking about taking an equity stake in Legendary Pictures, an America film production company founded in 2000 by Thomas Tull. The Burbank, California based Legendary Pictures aligned with NBCUniversal last year.

Last year, the Japanese giant acquired Sprint in a deal valued at $21.6 billion. With a 32% stake worth more than $71 billion, SoftBank is the largest stakeholder in Alibaba and also has 41.9% voting stake in Yahoo Japan. It's apparent that SoftBank's vision includes entertainment. Rumors were making rounds that CEO Masayoshi Son's company was planning to buy Jeffrey Katzenberg's DreamWorks Animation but reports revealed that those talks have cooled. After acquiring online game company GungHo Online Entertainment in 2013 and Finland's Supercell and its failed attempt to takeover Universal Music.

Thomas Tull's Legendary Pictures' consists of blockbusters such as Dark Knight and Hangover films. It has also worked on upcoming movies like Unbroken and Interstellar.

SoftBanks owns Sprint as well as other mobile providers and is a heavy pocketed internet/telcom giant. With an intention to look for programming that SoftBank can own or distribute in order to boost its mobile subscription offerings universally, SoftBank has been circling studios and content providers. With 32 percent stake in e-commerce giant, Alibaba, SoftBank is flush with cash.

A year ago Forbes valued Legendary Pictures at $2.5 billion; however, estimates by a knowledgeable source revealed that its value has increased to a minimum $3 billion since then. The company announced a multiyear distribution deal and co-financing with Universal in 2013 and financed summer's hits like Godzilla and released under its former co-financing and distribution deal with Warner Bros. It also has a stake in Interstellar, a directorial venture of Christopher Nolan.