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Paramount buys rival Dreamworks

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12th December 2005 13:13  #1

Bodhi Member Join Date: February 2005 Location: United Kingdom Posts: 403
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

12th December 2005 14:01  #2

Tony DeFrancisco Senior Member Join Date: July 2005 Location: United States Posts: 2,652
That was a BIG surprise. I never even expected something like that.

12th December 2005 21:35  #3

rob murray Member Join Date: November 2004 Location: United States Posts: 477
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

12th December 2005 23:36  #4

Gabe Powers Editor Join Date: September 2004 Location: United States Posts: 4,443 Send a message via ICQ to Gabe Powers
So we're down to, what, 4 corperations owning American entertainment? Sony, Viacom, Fox (?)...

12th December 2005 23:41  #5

Matt Contributor Join Date: October 2004 Location: United States Posts: 2,113
...NBC/Universal, AOL/Time Warner, and Disney.

13th December 2005 0:28  #6

Mal Webmaster Join Date: May 2001 Location: United Kingdom Posts: 1,290
I find it weird how they put so much effort into merging together, then yet more effort into marketing separate brands/labels for all the different niches as if they are trying to hide the fact.

From what I can tell Sony seem to be the only group that is trying to make a universally global brand. Even Disney is using the ABC label to promote their more grown up content.

13th December 2005 0:59  #7

Aaron Schneiderman Senior Member Join Date: September 2005 Location: United States Posts: 1,198
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.

13th December 2005 1:33  #8

Tony DeFrancisco Senior Member Join Date: July 2005 Location: United States Posts: 2,652
Aaron Schneiderman wrote: Sorry, duplicate post. Not sure how that happens.It happens if you double click the mouse.

13th December 2005 2:50  #9

Adrian Senior Member Join Date: September 2005 Location: United States Posts: 1,305
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.

13th December 2005 18:22  #10

Gabe Powers Editor Join Date: September 2004 Location: United States Posts: 4,443 Send a message via ICQ to Gabe Powers
I'm betting that within five years we're down to Sony, Disney, Viacom and Time Warner.

13th December 2005 22:17  #11

rob murray Member Join Date: November 2004 Location: United States Posts: 477
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

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