DreamWorks and Universal Honeymoon is Over, Is Disney Next?
DreamWorks is having a tough go at finding a friend
News has broken regarding DreamWorks's departure from Universal after their distribution partnership was hammered out just four months ago from both Variety and the New York Times. Both sources, however, are reporting the same news that it looks like the studio headed by Steven Spielberg and Stacey Snider is looking at Disney as its new distribution partner after it failed to raise money to match the $500 million invested in the company by Mumbai-based Reliance Big Entertainment.
A deal with Disney, which could come as soon as Friday reports Brooks Barnes and Michael Cieply at the NYT. Disney had been a suitor for DreamWorks back in October, and Stacey Snider, the chief executive of DreamWorks, and David Geffen, the co-founder of the studio, were keen to align with the company. But Spielberg ultimately overruled them, concluding that Universal — where he made his first blockbuster and where he still maintained offices — was the right fit.
Strangely enough, this comes on the heels of Disney reporting massive losses in the most recent quarter, a 64 percent drop in income to be exact, largely due to a decline in DVD sales around the world. The studio has also limited the number of movies it makes to about 12 from as many as 20 in previous years.
A statment issued by Universal posted by the "Times" reads as follows:
Universal Pictures 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.
All of this comes as DreamWorks parted ways with Paramount last year.
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