Paramount buys rival Dreamworks Paramount buys rival Dreamworks

Viacom, which owns Paramount, has agreed to pay $1.6bn (£914m; 1.36bn euros) - more than $1bn in cash, plus taking over Dreamworks' debts.

It gives the company the talents of one of the most famous filmmakers in the world, ET director Steven Spielberg.

And it appears to show that even a top name like Spielberg cannot create a new independent film studio these days.

Dreamworks was established 11 years ago to combine three talents in the world of film, animation and music - Spielberg, David Geffen and Jeffrey Katzenberg.

Spielberg is known around the world for directing huge Hollywood hits like Jaws and Schindler's List.

Geffen had been a top record producer and Katzenberg a leading light at Disney.

NBC outbid

By buying Dreamworks, Paramount has now acquired an impressive library of films, which includes Gladiator, American Beauty, and Saving Private Ryan.

It reportedly plans to sell off the library, expecting it to fetch $850m to $1bn.

The deal does not include Dreamworks' animation studios - the creators of hits such as Shrek - but it does include the right to distribute already-made animated Dreamworks films.

Paramount will also take over a television division with long-running popular shows like Spin City.

NBC Universal, a unit of GE, had offered $900m but was outbid. Last Friday, it was given an extra hour to improve on its offer but walked away.

BBC North America business correspondent Guto Harri says Viacom hopes the deal will enable it to establish Paramount as an industry leader.

He adds that for Dreamworks, the deal is the final proof that despite the talents involved, the company has failed to become the ambitious media conglomerate that it had once hoped to be.

Recent Dreamworks films include Wallace & Gromit: The Curse of the Were-Rabbit and War of the Worlds - coincidentally a joint production with Paramount.

Spielberg and Geffen will reportedly stay with the company.

Source:
http://news.bbc.co.uk/1/hi/business/4519012.stm

That kind of sucks, like the article said, not even Speilburg can make an independent studio. I\'m glad that the animation studio didnt get bought though

...NBC/Universal, AOL/Time Warner, and Disney.

There is plenty of competition out there folks. Independent film makers still exist and the studios will still be looking to distribute product for them. Ultimately we have the power to determine what they produce through the magic of the dollar, pound, euro, peso...whatever your currency of choice. If you don't like the c**p they turn out don't go see it and don't buy it on DVD.

This was a bit of a surprise, not that someone bought Dreamworks, but that the fact that someone was Paramount.  I wonder if NBC/Universal will regret letting Dreamworks get away.

I am not sure what Paramount is really getting because I heard that the Dreamworks would eventaully sell off Dreamworks Animation and the back catalog separetly.

Adrian wrote: This was a bit of a surprise, not that someone bought Dreamworks, but that the fact that someone was Paramount.  I wonder if NBC/Universal will regret letting Dreamworks get away.

I am not sure what Paramount is really getting because I heard that the Dreamworks would eventaully sell off Dreamworks Animation and the back catalog separetly.

What theyre getting is the use of Speilburg pretty much exclusively