Paramount Pictures, a unit of Viacom Inc., has signed a definitive agreement to acquire DreamWorks SKG for $1.6 billion in cash and assumption of debt. The deal brings Paramount key assets, including:
All of DreamWorks current projects in development;
An ongoing production partnership with Steven Spielberg and David Geffen;
An exclusive, worldwide distribution agreement with DreamWorks Animation (NYSE: DWA) beginning in 2006;
DreamWorks’ live-action library;
DreamWorks television division and its properties; and,
Exclusive rights to future DreamWorks Animation characters in TV shows.
The announcement was made today by Brad Grey, Chairman and CEO of Paramount Pictures.
Paramount also indicated that it is in advanced discussions with identified investors to sell DreamWorks film library, promptly after closing. Paramount would continue to have distribution rights to the film library.
Agreement to Accelerate Turnaround and Growth at Paramount
The acquisition of DreamWorks dramatically accelerates the turnaround of Paramount.
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