Disney and Dreamworks Team Up

According to CNN.com, Walt Disney Studios has agreed to a distribution partnership with DreamWorks Studios as of Monday.

Per the agreement, Disney will distribute at least six DreamWorks movies each year that are produced through DreamWorks' agreement with Indian company Reliance BIG Entertainment. The Indian company is a large producer of Bollywood films.

This new partnership with Disney comes as a fix for DreamWorks, as they lost their previous partner, Universal, just a few weeks ago. No terms of the collapsed partnership were announced, but it has been speculated that the deal went sour when DreamWorks asked for an increase in financial help to produce the movies being made through Reliance.

With the new Disney partnership, Reliance will deal with the distribution of films in India.

The first movie to be released under this new agreement will appear sometime next year, according to the companies.

"Disney is the birthplace of imagination and has always been as close to the worldwide audience as any company ever has," Steven Spielberg said.

DreamWorks' new deal with Disney is somewhat ironic. The company was created when Jeffrey Katzenberg, a Disney executive, did not get promoted to president of Disney when the job was open in 1994. Katzenberg then resigned, forming DreamWorks with Spielberg and David Geffen.

The new relationship is also a step towards bringing the successful Indian "Bollywood" industry to Hollywood. BIG Pictures has arrangements in the works with a few production companies, as well.