(Reuters) – DreamWorks Animation SKG Inc, a studio behind a “Shrek” authorization and this summer’s “Madagascar 3: Europe’s Most Wanted,” is in talks with Sony Pictures Entertainment about distributing a films, according to a chairman with believe of a discussions.
Under a agreement that expires subsequent year, DreamWorks pays Viacom Inc‘s Paramount Pictures 8 percent of film revenues generated during film theaters and on DVD. Last year, Paramount deserted a ask from DreamWorks Animation CEO Jeffrey Katzenberg to extend a agreement and reduce a price to 7 percent.
DreamWorks has told analysts that it intends to pointer a new agreement by mid-year to give it time to emanate selling campaigns indispensable for subsequent year’s films.
Few sum have been concluded with Sony, and an proclamation is not approaching soon, according to a source. Katzenberg had sought to emanate his possess placement operation, and might still determine usually to have Sony discharge a films internationally.
Paramount is pronounced to normal $50 million in revenues for any DreamWorks film, after covering a costs, according to one chairman with believe of a agreement.
Paramount’s final DreamWorks recover is “Rise of a Guardians,” a story in that Santa Claus, a Easter Bunny and Jack Frost save a world’s children. It is scheduled for recover on Nov 12.
DreamWorks Animation, that had a before placement arrangement with Universal Pictures that lapsed in 2008, had motionless opposite distributing a possess films worldwide, according to a Los Angeles Times, that initial reported a news.
Katzenberg has talked in a past to Fox, a section of News Corp, and Warner Brothers, that is partial of Time Warner Inc.
DreamWorks and Sony had no comment. Paramount could not be reached for comment.
Dreamworks Studios, Steven Spielberg’s live movement film company, is a apart association whose films are expelled by Walt Disney Co.
(Reporting by Ronald Grover; Editing by Jackie Frank)R Soft Web Hosting