Universal Pictures Finalizes Deal to Distribute DreamWorks!

The New York Times reports that Steven Spielberg and his DreamWorks film company have finally inked a distribution deal with Universal Pictures. Universal released Spielberg's first major film hit, Jaws, over 30 years ago. The final choice came down to Universal or Disney, according to a statement made by Mr. Spielberg. The deal also marks the end of an era for DreamWorks, as co-founder David Geffen is leaving the organization, a move that is not a surprise.

Spielberg has continually worked on the backlots of Universal for 31 years, even after DreamWorks sold their live-action unit to Paramount in 2006. The relationship between DreamWorks and Paramount was rocky from the start, with continual disagreements between studio executives and the DreamWorks family. Spielberg was quoted Monday as saying, "It's a very lovely homecoming. . . . Even coming through the gate this morning actually felt different. . . . I felt better. Less like a squatter."

The six year deal guarantees distribution of up to six films, with the first being released in late 2009. If any of the future films include existing development projects at Paramount, then Paramount stands to take a cut as well.

DreamWorks was originally founded to meld artistic integrity with the muscle to release blockbuster movies.