Paramount snaps up DreamWorks to end Spielberg's big studio ambitions
Monday 12 December 2005
For about $1.6bn (£910m), including about $400m of debt, Paramount earned the right to distribute the DreamWorks slate of films, nine of which are set for release next year.
Paramount - part of the sprawling Viacom media empire - scooped DreamWorks' library of 60 titles, including Saving Private Ryan. It is guaranteed half of the profits of anything Mr Spielberg directs, regardless of which studio finances him.
The wheels have been slowly coming off DreamWorks, for several years. First it abandoned plans to build a new studio lot on an environmentally sensitive piece of land in Los Angeles. Then it sold off its music and videogame divisions.
DreamWorks Animation, which encouraged British animator Nick Park to give his Wallace and Gromit characters full-length feature treatment in The Curse of the Were-Rabbit, became a separate company last year.
Finally, Mr Spielberg demonstrated he was more interested in directing films than in financing and distributing them. This year alone, he has directed War of the Worlds and the upcoming Munich, a thriller set in the aftermath of the killing of 11 Israeli athletes at the 1972 Olympics.
DreamWorks, launched to great fanfare in 1994, was never in serious financial peril. Thanks to the prestige of its principals, it managed to pump out a steady series of critical and commercial hits, including the back-to-back Best Picture Oscar winners American Beauty and Gladiator.
But in a film business dominated by international media conglomerates with fingers in every conceivable pie - television, music, news organisations, even video and DVD rental outlets - it suffered from an intrinsic competitive disadvantage.
The lack of an extensive library, the lifeblood of a second-tier studio like MGM which lives largely on the royalties of its past, was also a crimp on its financial stability. In the end, it became easier to operate as an unusually prestigious production company rather than a full-blown studio.
Buyers had been circling DreamWorks, which Mr Spielberg co-owns with entertainment executives Jeffrey Katzenberg and David Geffen, for some time. Until recently, the most likely purchaser appeared to be NBC Universal, under whose roof Mr Spielberg set up his Amblin Pictures production company in the 1980s. In the end, Paramount made the more attractive offer and turned out to be the more attractive fit.
Paramount, recently taken over by a new studio chief, Bray Grey, was suffering from a thin roster for 2006. Now it will automatically inherit several prestige projects, including Clint Eastwood's next film, Flags of Our Fathers, about the Second World War battle for Iwo Jima.
DreamWorks' most enduring legacy in Hollywood history may be its successful challenge to the dominance of Disney in the animation field. Mr Katzenberg, who worked at Disney for 10 years before falling out with his boss, Michael Eisner, appeared to relish the opportunity to stick it to his former masters. Off-screen, he won $250m in a court case in which he and Mr Eisner traded deliciously public insults. On screen, he made sure that Shrek, the stinking if lovable green ogre, was endowed with Mr Eisner's facial features. More significantly, Disney has been reduced to producing box-office bombs such asTreasure Planet and the recent Chicken Little.
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
- 4 Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
- 5 Grumpy Roald Dahl letter warning student to 'eschew beastly adjectives' rediscovered after 35 years
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...