Universal backs out of DreamWorks deal, DreamWorks talking to Disney

[ROBONICS95]

Bloomberg.com: U.S.

Spielberg’s Studio Said to Be in Talks With Disney


By Andy Fixmer and Michael White

Feb. 6 (Bloomberg) -- Steven Spielberg’s DreamWorks SKG studio ended talks to distribute movies through General Electric Co.’s Universal Pictures and is now in discussions with Walt Disney Co., according to a person with knowledge of the matter.

Over the past several weeks, DreamWorks sought changes to previously agreed-upon terms, Los Angeles-based Universal said today in a statement. As a result, DreamWorks is talking with Disney, said the person, who declined to be identified because the discussions are private.

Spielberg and DreamWorks investment partner Reliance Entertainment Pvt. have been financing the studio’s startup costs while they seek additional funds. Those efforts have been hampered by credit-market turmoil.

Heidi Trotta, a spokeswoman for Disney’s film studio, declined to comment. Spielberg spokesman Marvin Levy wasn’t available.

Disney, based in Burbank, California, rose 80 cents to $19.51 at 2:01 p.m. in New York Stock Exchange composite trading. General Electric, based in Fairfield, Connecticut, rose 29 cents to $11.14.

The New York Times reported on the Disney talks earlier, citing four people with knowledge of the situation.

Spielberg, 62, chose Universal Pictures in October to distribute films following his departure from Viacom Inc.’s Paramount Pictures. Stacey Snider is the studio’s co-chairman and chief executive officer.

Universal released early Spielberg films, including “Jaws” and “E.T.: The Extra-Terrestrial,” and his offices remained there after DreamWorks was sold to Paramount.

[stitchon]

Dreamworks is the anti-Pixar.... not thinking Disney will sign a deal with them.

[ROBONICS95]

It is my understanding that this deal would not include distribution for the animation division, just movies and TV.

[Coheteboy]

My heart stopped for just a second. Why did Universal back out? This would have been the best decision they've done in awhile!!

[cellarhound]

Note to Iger-

MAKE THIS DEAL!

Yeah, I know it is a lot of money, and we are a bit short... But let's be honest here... Our studio is sputtering... I think it is because when you lost the Weinsteins; you, Mr. Iger, lost some of your movie deal making juju...

But creating a relationship with Dreamworks right now makes a LOT of sense... Even if it is only as a distributorship partner...

I do realise there are some problems doing this, however... We can discuss those later.

Thank you.

- an investor

[ROBONICS95]

Originally Posted by Coheteboy

My heart stopped for just a second. Why did Universal back out? This would have been the best decision they've done in awhile!!

Story is, during negotiations, DreamWorks asked for more money. Universal said no, DreamWorks secretly approached Disney, Universal pulls out.

That's at least my understanding.

[Goover]

Now, if I see Shreck in IASW...

[ROBONICS95]

I wouldn't mind seeing Mr. Roger Rabbit return.

[Maverick]

Originally Posted by stitchon

Dreamworks is the anti-Pixar.... not thinking Disney will sign a deal with them.

Dreamworks is the anti-Eisner

[Monkey joe]

Dreamworks animation is separate from Dreamworks Studios. Outside of that, Disney would distrute all of Dreamworks live-action and tv programming. So any future Spielberg film would come from Disney, like his Lincloin biopic. Also two huge people involved with Roger Rabbit are at Disney now, Robert Zemmeick and Steven.

[ROBONICS95]

Spielberg Deal With Disney for 6 Years, 30 Films, FT Reports

By Sylvia Wier

Feb. 8 (Bloomberg) -- Filmmaker Steven Spielberg is close to announcing a six-year, 30-film distribution deal with the Walt Disney Co., the Financial Times reported, citing no one.

The deal may be announced as soon as tomorrow, the newspaper said. Cash is involved in the transaction, though it will be in the form of a loan rather than an equity stake, the newspaper said. The FT put no value on the transaction.

Bloomberg.com: Worldwide