Universal Drops DreamWorks
Posted by Mehar Gill on February 10, 2009
Filed Under: Disney, DreamWorks, Format War, Studios, Universal
In a rather surprising move, Universal Studios has decided to essentially pull the plug on a deal that would allow them to distribute films made by DreamWorks. Because of this move DreamWorks is now unable to distribute films in theaters or even film new productions. Universal Studios had this to say,
“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.”
DreamWorks decided not to release a public announcement. Previously DreamWorks had a deal with Paramount which was terminated due to internal issues between the two companies. For those unaware, DreamWorks is Steven Spielberg’s studio, Universal and Spielberg had a good relation in the past with hits such as E.T. and Jaws, when the deal was first announced 5 months ago Spielberg had this to say,
“We came home.”
Perhaps Universal also had a “friend“? Many suggest DreamWorks may look to Disney for a partnership, if such is the case Disney will essentially have a monopoly in the animated film industry. The moment The Suite Life crosses over into Tropic Thunder we can all share a collect sigh of “wtf”?!?!
[Via USA Today]
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Disney already picked them up, according to wide ranging newsreports.