DreamWorks Close To An Accord With Disney

After Universal Pictures severed ties with DreamWorks following four months of negotiating a distribution deal, DreamWorks is in the process of making Disney their replacement.

According to Variety.com: "The studio had been engaged in talks with DreamWorks for the past two weeks to renegotiate the deal, which was agreed upon in terms but had never been finalized. DreamWorks recently approached Universal to modify the terms of the pact after it became clear that it was having problems raising the money necessary to finance six films a year."

It seems that even though Universal was willing to make dispensations, they would not agree to DreamWorks's requirement to lessen the distribution fee below 8 percent, an unprecedented rate by today's Hollywood standards. In addition, Universal was unaware that DreamWorks was already in talks with Disney to replace them as their studio partner.

Variety.com also talked about Universal's reaction to this news: "Universal was blindsided and privately called DreamWorks's behavior 'despicable and deplorable.' Publicly, the studio released a statement that said it 'has ended discussions with DreamWorks for a distribution agreement. Over the past several weeks DreamWorks has demanded material changes to previously agreed upon terms. It is clear that DreamWorks's needs and Universal's business interests are no longer in alignment. We wish them luck in their pursuit of funding and distribution of their future endeavors.'"

Presently, DreamWorks is extremely close to inking a deal with Disney which would aid DreamWorks in increasing mezzanine funding. The accord would also provide DreamWorks with P&A funds and possible production co-financing for DreamWorks's intended six pictures.

Even though a partnership with Disney would help DreamWorks, Variety mentions a slight problem that would arise: "Since the success of the 'Pirates of the Caribbean' franchise, the studio has been strictly focused over the past several years on making movies that fit the Disney brand. That means family movies that it can fully exploit across all of its divisions, including theme parks, the Internet, homevid, videogames and merchandising -- essentially movies it can capitalize on companywide. DreamWorks doesn't necessarily make those kinds of movies.'"

In other words, DreamWorks leans more toward making horror flicks such as "The Uninvited," edgy musicals like Tim Burton's "Sweeney Todd," and R-rated comedic films like "Tropic Thunder." Movies that would never be okayed by Disney.

Variety closes with why DreamWorks feels an alliance with Disney instead of Universal would benefit them more: "DreamWorks brass feel that Disney is a better fit for its company than Universal, though it is unclear why the company didn't strike a deal with the Mouse House back in October. As one DreamWorks insider put it, 'Steven made the deal with Universal for sentimental reasons," referring to the studio where the helmer began his career. 'But now, he realizes Disney is a better business match.'"