Universal Dumps DreamWorks

The partnership between Universal and DreamWorks is over, ending before any inkling of a problem ever appeared.

According to USA Today, Universal released a statement on Friday, which announced that the company was ending its agreement with DreamWorks.

Without Universal's financial support and agreement to release their films, DreamWorks is at a loss. The studio responsible for box office hits such as "Transformers," "Tropic Thunder," and "Blades of Glory" has stalled due to the breakup, leaving them unable to work on new projects and too financially weak to place their films in theaters. The company is also unable to shoot new and current films without a new home.

The partnership between the two companies had been the ideal merger, mixing DreamWorks' creative edge with Universal's experienced marketing and distribution skills. The agreement ended with a four-sentence statement by Cindy Gardner, a Universal spokesperson:

"Universal Pictures 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' 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."

DreamWorks has chosen to not release a public statement.

The breakup comes as both a shock and possibly a personal hit to DreamWorks partners Steven Spielberg and Stacey Snider. Spielberg's early hits, "Jaws" and "E.T. The Extra-Terrestrial," were released with Universal, and his Amblin Entertainment headquarters reside on Universal's back lot. Snider, on the other hand, was the former studio boss for Universal.

When the partnership was announced five months ago, Spielberg was pleased to hear the news, saying, "We came home."

"Every movie is fraught with unknown hazards: Is the idea commercial? Are we being too adventuresome with our concept? There are so many unknowns in conceiving a motion picture and getting it made and doing it the best you can," Spielberg said at the time. "I want my colleagues and partners to be the least of my problems. The making of a film, the conceiving of a good script is enough of a problem. I want calm waters."

Prior to this agreement with Universal, DreamWorks had paired up with Paramount. That partnership lasted two years and was quite successful, resulting in the hits "Transformers," "Dreamgirls," and "Sweeny Todd." However, the deal ended due to internal problems with Paramount's leadership.

DreamWorks was looking for more of a financial commitment from Universal due to the economic crisis, which in part led to the breakup between the two. Now DreamWorks, along with Spielberg and Snider, is searching for a new partner. One possibility is Disney, who had been one of the early options for the company after splitting from Paramount.