Monday, December 12, 2005

Paramount to buy out Dreamworks

It looks like the Shrek-makers have gone to:

Paramount Pictures agreed to buy the independent film studio for $775 million in cash. It will also assume $825 million in debt and other obligations, company officials said Sunday.

Sounds like Paramount is only getting their film library and the right to distribute the animated movies for 7 years. It also seems that NBC may have dropped the ball on this one:

Paramount put its offer together just last week, after DreamWorks had been discussing terms with NBC Universal, a unit of General Electric Co., for nine months.

NBC Universal made an offer in September, then reduced it at the last minute. That angered Geffen, who said he was still talking to NBC Universal as late as Friday before finally accepting the Paramount offer.

I wonder why they reduced the deal at the last minute? I guess it could have been because of the dropoff in DVD sales that Dreamworks has been having. So the bean counters may have cost them this deal. It really seems that NBC is crapping out on at full force.

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