Dreamworks And Paramount Finalize Split, Geffen Ends Relationship

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'm told the decision as to the new distributor for DreamWorks 2.0 will be made at the beginning of the week by Steven Spielberg. (Of course, odds are it's going to be Universal.) Below is an advance look at the press release to be issued about the formal separation of Paramount and DreamWorks which was started by Steven Spielberg, David Geffen and Jeffrey Katzenberg. This ends David Geffen's 14 years as a DreamWorks partner and his retirement from the film business now that the DreamWorks principals' resignations were finalized with this agreement. Wow, end of an era! The deal now means that Geffen has engineered his most fervent wish: to give director Steven Spielberg and his studio chief Stacey Snider a big enough warchest of $1.5B worth of indie financing (half from India's Reliance ADA) so they could leave their rocky relationship with Paramount behind and answer only to themselves. As for Katzenberg, he is chief of the publicly traded DreamWorks Animation, and its distribution agreement with Paramount continues. He, too, will not be associated with the new Spielberg- and Snider-run DreamWorks.

Read the whole story at Deadline Hollywood Daily