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Shareholders of Point.360 (NASDAQ:PTSX), a stock we've been tracking, were rewarded yesterday 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 29, 2006 after the company acquired a large stake from Point.360 shareholder Midwood Capital. DG FastChannel was aggressively raising its stake in Point.360 which stirred rumors of a buyout.

Shares of Point.360 reached $5.38 after-hours on the news.

PTSX 1-yr chart
PTSX

Source: Point.360 Shares Soar Upon Agreement With DG FastChannel