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DreamWorks is Breaking Away from Paramount

Posted: June 18th, 2008 by WorstPreviews.com Staff
DreamWorks is Breaking Away from ParamountSubmit Comment
The Wall Street Journal reports that movie studio DreamWorks is close to a deal with India's Reliance ADA Group to form a new movie venture, that would give Steven Spielberg the cash to finance his company's departure from Viacom's Paramount Pictures later this year.

Reliance would provide Spielberg and company with $500-$600 million in equity and would also give Reliance a large stake in the new company, which will be developing about six films per year.

DreamWorks was sold to Viacom in 2006 after a decade-plus run as a private company. But a tense relationship soon developed between DreamWorks and Paramount, and last year DreamWorks began to signal publicly that they might leave the studio in 2008, when the contracts of Spielberg and David Geffen allow it. Another provision of their complex arrangement will likely allow them to keep using the DreamWorks SKG name, though Viacom would retain rights to the films they created during their short time at Paramount.

The new company may end up being headed by the current DreamWorks Chief Executive Stacey Snider, who has become a key ally and collaborator since joining Spielberg in 2006. The former head of Universal Pictures, Snider would give Reliance a tested Hollywood manager for its biggest foray into the global movie business.

Source: Wall Street Journal, Reuters


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