DreamWorks and Paramount seal their parting of ways

Televisionpoint.com Correspondent | Mumbai
The principals behind DreamWorks SKG and Paramount Pictures sealed their parting of ways officially on October 05, a move that allows the DreamWorks studio co-founded by director Steven Spielberg to tie up with Reliance ADAG to start a new film company.

As part of the agreement, the DreamWorks principals' new company will take the lead on a number of development projects, which Paramount will have the option to co-finance and co-distribute.

The majority of existing DreamWorks staff is expected to be offered positions at the new company. DreamWorks co-founder David Geffen will not join the new company.

Conversely, all projects in development to remain with Paramount will permit the Reliance-backed venture to co-finance several projects to which Spielberg is attached.

In addition, Spielberg will continue to produce the Transformers franchise for Paramount and will also collaborate on three other Paramount films including, When Worlds Collide.

The Hollywood-Bollywood linkup of DreamWorks and the Reliance Big Entertainment two weeks ago caps two years of speculation and feuding between the DreamWorks partners with executives from Paramount and its corporate parent, Viacom Inc

"We have had a great run with the DreamWorks team both creatively and financially. In particular, it has been a true honor working closely with a storyteller of Steven's talent and stature." said Brad Grey, chairman and CEO, Paramount Pictures.

Spielberg added, "Brad is a friend and I am pleased to be able to continue to work with him and his team with whom we have shared many successes."

Despite their uneasy partnership, DreamWorks continued to churn out successful movies for Paramount, including last year's hits Transformers, Disturbia and Blades of Glory.