David Geffen, by nature a garrulous, congenial man, has been telling folks that he has had it with the film business and intends to focus on other interests. His comments have refocused attention on an interesting question: What will finally happen to DreamWorks?
Putting together fragments of information, this seems to be the answer: DreamWorks is busy raising money to facilitate a distribution deal at a major. The exit from Paramount seems firm; the likely destination, Universal. And given Geffen’s exit, Stacey Snider would become a full partner of Steven Spielberg. Jeffrey Katzenberg, of course, has his own home at Paramount running DreamWorks Animation, and is zeroing in on some formidable initiatives in the world of 3-D.
A deal at the newly charred Universal would be welcome to Spielberg, who has a long association with that company. (His offices there were not affected by the fire.) Whether it’s acceptable to Universal would depend on the terms of the distribution deal; a deal below 10% or 11% would not be an inducement.
Anyway, the whole scheme depends on DreamWorks’ ability of to raise many hundreds of millions of dollars. The ubiquitous Skip Brittenham, DreamWorks’ legal guru, has proven his genius for these maneuvers in the past.
In any event, DreamWorks clearly is entering an entirely new phase in its remarkable development. And it will be a busy phase: While Geffen’s interests may lie outside film, Spielberg will surely be at least as productive in the future. Some of that productivity will reside, however, with projects presently owned by Paramount.
How will those projects be divvied up? That’s one negotiation I would not like to be part of. Paramount may own the projects, but Spielberg can effectively annex or block any projects he covets. And both he and Paramount, whatever their differences in the past, realize they have to co-exist amicably in the future.
Divorce is rarely amicable, to be sure. But very wealthy people and very big companies can rewrite those rules, too.
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