DreamWorks is free, free at last!

It's official. The Wall Street Journal has the scoop that DreamWorks SKG is creating a new $1.2-billion company, having concluded its long-anticipated financing deal with Reliance, one of India's biggest entertainment conglomerates. The good news is that DreamWorks is now backed by a mega company that isn't caught up in the Wall Street meltdown of recent days. The new DreamWorks will be run by Steven Spielberg and Stacey Snider, with longtime DreamWorks partner David Geffen bowing out of active participation in the company. The move ends a contentious two-year-plus marriage with Paramount Pictures, which was frequently at odds with the DreamWorks team.

So what happens next? DreamWorks still has two sets of closely watched negotiations to complete: a new studio distribution deal for its film product and a severance package with Paramount, which has a host of DreamWorks development projects in hand. (Paramount has been releasing DreamWorks films for the past two years since the company was purchased in 2006 by Viacom, Paramount's parent company.) As I've written in the past, there aren't many serious contenders for DreamWorks product, largely because of all the shrinkage in the marketplace. The most obvious candidate is Universal Pictures, which has had a long, looooong relationship with Spielberg -- he still keeps his Amblin offices on the Universal lot.

But Universal is no pushover. As my colleague Claudia Eller pointed out today, Universal had no problems saying no to Spielberg when he and Peter Jackson went to Universal, hoping for a partner to take some of the financial risk off of Paramount, which is financing their ambitious series of "Tintin" films. Universal would love to have DreamWorks product to beef up its home video pipeline, but the studio's production team might not want the headache of having to fight it out with Spielberg and Snider every year over whose movie gets a coveted 4th of July or Thanksgiving weekend release date.

But the rest of Hollywood is probably celebrating. With so many companies foundering, in a desperate search for funding or totally out of business, seeing DreamWorks back up and running with a nice chunk of cash in the bank is probably music to the ears of agents, producers and screenwriters everywhere. In Hollywood, where everyone is rooting for friends and enemies alike to fail, the one person who gets a big wet welcoming kiss is the new buyer in town.   

Photo: Steven Spielberg. Credit: DreamWorks.

Comments

[Michel Braga]

I can´t believe even Steven Spielberg is dealing with an India´s entertainment company!!!

I still believed that Hollywood ruled the "movie world", now India with their creepy entertainment is invading the scene.

I´m deeply sorry.

[Livistuyck]

what about Pixar/Disney that's the other major player and you don't even mention it.

[Rewant Lokesh]

Mr. Michel Braga.
Welcome to the globalized world, where companies, markets, industries, countries and people are coming together to work and flourish. I believe it is very shallow of you to say something like that India has creepy entertainment just because you obviously don't watch too many of them and dont understand the entertainment in India. Yes, it is very different from Hollywood, but now the Indian film industry wants to co operate with Hollywood and make better movies, and Hollywood needs money from India, because they are less susceptible to the market volatility of the US. This is definitely great news because the most expensive film industry and the largest film industry in the world will come together through such deals and create wonders.

[DanijelS]

What's creepy about India's film industry? Very ignorant statement to say the least...

[Sanket Rajadhyaksha]

Michel,
Arrogance is not a good thing...
Reliance is a highly reputed company worldwide and the partnership will be beneficial for both the companies.India as per your thoughts might have a creepy entertainment system but it has a larger audience than over here in North America. Its good to be proud of your own achievements but that doesnt mean you belittle others with smaller ambitions/achievements. Always try to be modest even when you are on the top. Hollywood does rule the movie world with its innovations and concepts but doesnt mean that others make crap. Of the 100's of movies made here by hollywood only a fewsucceed which also might mean that the rest have creepy entertainment too...come on grow up and try to look at the world with an open mind.

And if you feel so deeply sorry stop watching all the movies which dreamworks would make.

[Binky]

India, schmindia. Hollywood has a long tradition of taking sucker money from anywhere it can. The Japanese, the Germans, hedge funds, whatever, all the way back to dentists and retired corporals. To quote Raymond Chandler (IIRC): "They come in all shapes and sizes, but they leave in one size, small, and one shape, bent."

[Aj]

Michel,

Maybe India is trying to replace its creepy entertainment with awesome Hollywood product !!

[DN]

Hey Michel Braga,

You are an idiot for thinking that Indian entertainment is creepy. You might not want to show to the world your ignorance and lack of understanding for foreign cultures and their art forms. So shut your trap and be happy that you can watch more DreamWorks movies in your lonely world. There are goods and bads in every type of entertainment. You think Hollywood gets all its ideas and screenplays from here only? Stop living in a bottle. Idiot!

DN

[ravi karandeekar]

Congrats Anil Dhirubhai Ambani! For a while, every Bollywood actor was nursing the ambition of joining Hollywood except your friend, Big B, Amitabha Bachan. Now, i am hoping to see Big B acting in Steven Spielberg film and it will be shot extensively in Nitin Chandrakant Desai's studio in Karjat, near Mumbai in India.

[peter blair]

considering the merger, i see this as a
natural and not surprising evolutionary
change given the new connected world
we live in...maybe this was the best
we could ask for given the stakes.