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View Full Version : Parmamount Buys Dreamworks in Billion-Dollar Deal.


Shaderhacker
12-10-2005, 12:34 AM
"Paramount Pictures has agreed to buy the live-action unit of DreamWorks SKG in an estimated $1.5 billion deal, people familiar with the deal said today.

The agreement between DreamWorks and Paramount, a division of New York-based Viacom Inc., comes months after on again, off again negotiations with Paramount, as well as NBC Universal. Viacom will lead a group of investors in the purchase of DreamWorks and the assumption of its debt.

The acquisition does not include DreamWorks' animation division.

DreamWorks was founded 11 years ago by David Geffen, Jeffrey Katzenberg and Steven Spielberg.

A sale would further dismantle a company founded with grand ambitions that once included movies, TV, new media and music.

DreamWorks reaped two best picture Oscars, for "American Beauty" in 2000 and "Gladiator" in 2001, and released such critically acclaimed hits as Spielberg's "Saving Private Ryan." However, the studio also released such disappointments as "The Terminal."

Also, Dreamworks has a relatively modest library of less than 50 films, many of which are co-owned by other studios.

The business has become difficult for stand-alone movie companies like DreamWorks to survive. Metro-Goldwyn-Mayer Inc. was recently sold to an investment group led by Sony Corp.

When Spielberg, Geffen and Katzenberg announced the creation of DreamWorks in 1994, they hailed it as an entertainment conglomerate for the digital future, cutting across music, movies and television.

But since then, DreamWorks has sold its lackluster music label, closed its TV unit, shed its Internet aspirations and abandoned plans for a sprawling studio lot in the new Playa Vista development on the Westside. Last year, the company spun off its animation division into a separate, publicly traded company.

As a result, all that essentially remained of the original vision was the company's live-action studio.

Times staff writer James Bates contributed to this story."


http://www.latimes.com/business/custom/cotown/la-fi-dreamworks10dec10,0,817822.story?coll=la-news-alert&track=morenews


-M

FloydBishop
12-10-2005, 12:35 AM
Not bad for a company that hasn't been around too long.

Chris Bacon
12-10-2005, 12:40 AM
Not bad for a company that hasn't been around too long.

Thats what I was thinking

ntmonkey
12-10-2005, 12:48 AM
*Scratches head to figure out if this is a good thing or not*

If it's just the live-action unit, I'm not sure how it'll affect the animation aspect of things.

peace,

Lu

Bonedaddy
12-10-2005, 12:49 AM
A haiku:

Big fish eats big fish
The earth continues to spin
What does this mean, really?

ntmonkey
12-10-2005, 01:15 AM
Wall Street Journal is saying the price was somewhere between $800 - $900 mil. That's not nearly close to the 1.5 billion stated in the article. :shrug:

peace,

Lu

beaker
12-10-2005, 11:25 AM
If it's just the live-action unit, I'm not sure how it'll affect the animation aspect of things.It won't affect it. The animation unit is a public company, separate from the DW film company who is still privately owned by the S,K,G & Paul Allen. Paramount would either have to make a public offering to the stock holders, or do a hostile takeover.

SuperMax
12-10-2005, 11:29 AM
Im gonna miss the DreamWorks intro with the kid fishing

iC4
12-10-2005, 01:45 PM
It won't affect it. The animation unit is a public company, separate from the DW film company who is still privately owned by the S,K,G & Paul Allen. Paramount would either have to make a public offering to the stock holders, or do a hostile takeover.

but paramount has now the right to distribute the animation movies.

akaiwa
12-10-2005, 03:13 PM
I hate Paramount pictures for the sole fact that they author their DVDs like shit. They make their logo unskippable at the beginning, as well as commentary warnings (not representing the company), ratings, etc. If I want to watch a movie by them, I have to start the DVD 10 minutes in advance just to get to the menu, which is ridiculous.

Other then that - I'm torn. I wonder what this will mean for The Ring 3.

jasonsco
12-11-2005, 08:28 PM
It won't affect us technically, but it will affect the atmosphere, working environment, etc. We still do have a close relationship with the live-action company.

Sagii
12-11-2005, 08:50 PM
This is the year of the buy sell... or is it like this all the time?

hiphopcr
12-12-2005, 02:09 AM
Paramount will pay $775 million in cash and assume $825 million in debt and other obligations, the company said. (http://movies.yahoo.com/mv/news/ap/20051211/113436024000.html)

So Dreamworks was $825 in debt?

Wall Street Journal is saying the price was somewhere between $800 - $900 mil. That's not nearly close to the 1.5 billion stated in the article. :shrug:

peace,

Lu

beaker
12-12-2005, 09:42 AM
DW borrowed a lot of money from Paul Allen to get started in the first place. So that might be part of it.

phantomworkshop
12-12-2005, 03:33 PM
Seems to me like this is the year of Sale.

Autodesk buys Alias... etc.

I am curious as to what this will mean for Dreamworks in the future.

DigitalNeutrinos
12-12-2005, 05:25 PM
Darn i was hoping it was these two, New Line and MGM, In hopes to bring The Hobbit closer to PJ and Film.

Viva La The Hobbit :thumbsup:
http://www.thehobbitfilm.com/

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