DreamWorks close to Disney deal, Spielberg's company to leave Universal

[ALIASd]

Posted: Fri., Feb. 6, 2009, 11:40am PT

DreamWorks close to
Disney deal

Spielberg's company to leave Universal

By Marc Graser, Tatiana Siegel
Variety

DreamWorks is scrambling to find another distribution partner to replace Universal Pictures, which abruptly severed its ties with DreamWorks just four months after hammering out a much-ballyhooed distribution deal with the company.

The studio had been engaged in talks with DreamWorks for the past two weeks to renegotiate the deal, which was agreed upon in terms but had never been finalized. DreamWorks recently approached Universal to modify the terms of the pact after it became clear that it was having problems raising the money necessary to finance six films a year.

Universal was willing to make concessions -- including investing in the fledgling company -- considering how much the global economic climate has changed since the deal was originally struck in October. But the studio balked at DreamWorks’ demands to reduce the distribution fee below 8%, which would have been an unprecedented rate in Hollywood.

What Universal didn’t know is that DreamWorks -- led by attorney Alan Levine -- was also negotiating with Disney to replace Universal as its studio partner moving forward.

Instead, Universal was blindsided and privately called DreamWorks’ behavior "despicable and deplorable." Publicly, the studio released a statement that said it "has ended discussions with DreamWorks for a distribution agreement. Over the past several weeks DreamWorks has demanded material changes to previously agreed upon terms. It is clear that DreamWorks’ needs and Universal’s business interests are no longer in alignment. We wish them luck in their pursuit of funding and distribution of their future endeavors."

DreamWorks is now close to inking a deal with Disney, which is expected to help the company raise mezzanine funding. Disney, which was an original suitor to land a distribution deal with DreamWorks following DreamWorks’ split with Paramount Pictures, would provide DreamWorks with P&A funds, pay-cable slots and possible production co-financing for DreamWorks’ intended six pictures. So far, DreamWorks has secured a $325 million commitment from Mumbai-based Reliance, which is contingent on DreamWorks raising an additional $325 million in debt via its bankers at J.P. Morgan. Reliance and Spielberg have been splitting the company’s bills, which include development and overhead costs. But DreamWorks’ lack of capital has begun to take a toll on the company. Ben Stiller’s Red Hour shingle exited DreamWorks on Thursday and inked a deal with 20th Century Fox.

DreamWorks, which declined comment, is hoping to cut a deal with Disney in the next 48 hours. Timing raised eyebrows given that Disney recently severed its ties with Walden Media and the Narnia franchise citing budget concerns.

While a partnership with Disney would most certainly help DreamWorks, it wouldn’t necessarily make sense for the Mouse House. Since the success of the "Pirates of the Caribbean" franchise, studio has been strictly focused over the past several years on making movies that fit the Disney brand. That means family movies that it can fully exploit across all of its divisions, including theme parks, the Internet, homevid, videogames and merchandising -- essentially movies it can capitalize on companywide.

DreamWorks doesn’t necessarily make those kinds of movies.

full article at:
DreamWorks close to Disney deal - Entertainment News, Film News, Media - Variety

Disney, Universal after DreamWorks distribution - 9/22/08
Disney, Universal after DreamWorks distribution

[sir clinksalot]

Wow, to have Spielberg at Disney (for all intents and purposes) would be AWESOME!!!

[Rocker]

Can we have more Roger Rabbit movies at least?

[sailerm]

I wouldn't want another Roger Rabbit feature, but a small boatload of cartoon shorts would be heaven.

[Rex Dopey24]

Originally Posted by Rocker

Can we have more Roger Rabbit movies at least?

a sequel would be great.

[Baloo]

this is just for Dreamworks pictures right?


who is distributing Dreamworks animations now?

[*TIMMIE*]

Paramount is.

They left Uni some years ago. They treaded it for Paramount. Now they want to leave Paramount. At least, last year there were rumours.

[sir clinksalot]

I thought Animation is already back at Universal??? But yes, this is only for the live-action, not animation.

[CaliforniaAdventurer]

Animation Live Action and Music were split up. It's not S K G anymore.

Dreamworks records were sold off, I don't think Geffen is involved with Steven or Jeffrey now.

DreamWorks sure has gone through a lot of metamorphoses. It's like a chameleon company.

I think Dis could use some better live action movies, DW could fill the void left by the loss of Touchstone Pictures which had a lot of hits in its early days.

[Mr. Yeti]

Interesting. I remember when there was the annuouncement about Universal joining with Dreamworks. That was quick. Interesting to see how it turns out.

[Kuzcochik]

So, no more bad Dreamworks animated movies?
And the potential for more Roger?
I might be okay with this. I still think it's weird though

[sir clinksalot]

Originally Posted by Kuzcochik

So, no more bad Dreamworks animated movies?
And the potential for more Roger?
I might be okay with this. I still think it's weird though

It's not for the animation, just the live-action movie division. Animation is still with Paramount (or is it Universal) now.

[Ghostbuster626]

The animation division run by Katzenberg will remain at paramount

The live action division is now independent but is tied with Disney (similar to the Disney-Pixar relationship pre buyout)

[ALIASd]

Originally Posted by Kuzcochik

So, no more bad Dreamworks animated movies?
And the potential for more Roger?

Here's their near future:

Robert Downey Jr. and Tina Fey are in negotiations to lead the voice cast for DreamWorks Animation's superhero lark "Master Mind." Ben Stiller is a producer on the movie through his Red Hour Films.

The satiric film, with a screenplay by Alan J. Schoolcraft and Brent Simons, concerns a brilliant superhero villain who loses his life's purpose when he accidentally kills his good-guy nemesis. DWA plans a Nov. 5, 2010, release (though the title might change).

DWA had a banner year in 2008 with its releases "Kung Fu Panda" and "Madagascar: Escape 2 Africa" (also starring Stiller), which together have grossed more than $1.2 billion worldwide. The Jeffrey Katzenberg-led company also has "Monsters vs. Aliens" in theaters in March, "How to Train Your Dragon" and "Shrek Goes Fourth" in 2010, and a "Kung Fu Panda" sequel scheduled for 2011.

Paramount, which distributes DWA's output, has its own animated feature, "Rango," starring Johnny Depp, in production for a March 2011 release.

Robert Downey Jr., Tina Fey in talks for 'Master Mind'

Again this is a deal with Disney is for distribution rights not production.

And really, if Spielberg and Zemeckis wanted to make another Roger Rabbit film it would have happened already. It is Spielberg we're talking about.

If Zemeckis were to add it to his current disney deal with Amblin' onboard you'd probably be looking at a decade from now. And that's only if numerous projects were to fall off both parties' exisitng schedules and possible backlog of on hold/& or original productions.

[Monkey joe]

Originally Posted by CaliforniaAdventurer

Animation Live Action and Music were split up. It's not S K G anymore.

Dreamworks records were sold off, I don't think Geffen is involved with Steven or Jeffrey now.

DreamWorks sure has gone through a lot of metamorphoses. It's like a chameleon company.

I think Dis could use some better live action movies, DW could fill the void left by the loss of Touchstone Pictures which had a lot of hits in its early days.

Um Touchstone is still around.