DreamWorks bought by rival Paramount in £1.6bn deal

Paramount Pictures has announced the purchase of rival studio DreamWorks SKG for $1.6 billion (£914 million).
Under the wing of parent company Viacom, the acquisition brings Paramount key assets, including the portfolio of DreamWorks current projects in development and the ongoing production partnership with Steven Spielberg and David Geffen.
Also now under the Viacom wing are the extensive back catalogue of Dreamworks films produced in the past 11 years including 'Gladiator' and 'Saving Private Ryan'.
The deal further includes exclusive rights to the use of future DreamWorks Animation characters in TV shows.
The announcement was made today by Brad Grey, Chairman and CEO of Paramount Pictures.
Paramount also indicated that it is in advanced discussions with identified investors to sell DreamWorks’ film library, promptly after closing the deal, although Paramount will retain distribution rights to the film library.
Grey said: “With the incredible talents of Steven Spielberg, Hollywood's most gifted and respected director and producer, and David Geffen, the most creative mind in show business, Paramount will be able to significantly enhance its pipeline of groundbreaking motion pictures – a key strategic objective in restoring Paramount’s stature as a leader in filmed entertainment."
"Further, our new distribution partnership with Jeffrey Katzenberg and DreamWorks Animation will be an important driver in building our business internationally. All together, the worldwide marketing firepower and creativity of the new Viacom brands like Nickelodeon and MTV make Paramount an ideal home for DreamWorks and a fantastic partner for DreamWorks Animation.”
Commenting Steven Spielberg said: “I am thrilled by today's announcement of the deal with Viacom/Paramount, who came recently to the table and were able to conclude and sign agreements quickly. Due to my very long history and my loyalty to Universal, I was saddened that after long negotiations and many compromises, we were unable to come to terms with Universal's parent company, GE. Nevertheless, I am truly looking forward to working with Tom Freston, Brad Grey and Gail Berman, as this is an exciting opportunity for each of us to embark on a new adventure together.”
(SP/GB)