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Friday
06Feb2009

Universal and DreamWorks: Dunzo

DateFriday, February 6, 2009 at 10:32PM
There will be no distribution deal between Universal and DreamWorks. Even though Steven Spielberg has a long and tradition-rich history with the U, the studio balked today at a deal that would have allowed Universal to receive a pretty handsome distribution fee from DreamWorks because the junior studio "demanded material changes to agreed upon terms."

Those terms were not about parking spaces or office supplies. DreamWorks apparently wanted Universal to kick in an extra $100 million immediately and another $150 million down the road. To make matters worse, Universal, which apparently didn't even want to invest the first $100 million, discovered that DreamWorks was also negotiating the same deal with Disney, as a way to cover its bases.

Now, Spielberg and CEO Stacey Snider better hope Disney is still interested. The money is certainly an issue, and as we outlined last weekend, it's not like Disney is throwing cash around right now. But that is still probably the most likely new home for DreamWorks and its six movie distribution deal, a deal that might include some co-financing on the productions.

My question is the same one I raised when Spielberg and Peter Jackson couldn't get their Tintin money a few months ago: Spielberg is worth $3 billion himself. Can't he invest in his own company?

I'll be curious to see how this plays out and who the players will be. (Special thanks to Business Alley and Deadline Hollywood Daily for their coverage.)

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AuthorColin Boyd | | in , , , | Print ArticlePrint Article | | Comment1 Comment |

Reader Comments (1)

WTF........yea, why doesn't King Spielberg invest in his own company????????!!!!!!!!!!!!!!

Saturday, February 7, 2009 | Unregistered Commenterlara Petersen

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