Activision Inc. and DreamWorks Animation SKG Inc. have continued their partnership, setting a long-term deal granting Activision video game rights to DreamWorks' upcoming animated feature films.


Financial terms of the deal were not disclosed.


Under the terms of the agreement, Santa Monica-based Activision will develop and publish video games based on Glendale-based DreamWorks' upcoming movies, including "Bee Movie" and "Kung Fu Panda." The pact also covers films currently in development, such as "Rex Havoc" and "How to Train Your Dragon," and extends Activision's video game rights beyond "Shrek 3" to include potential future films in the "Shrek" franchise, the companies said in a joint statement.


Activision is currently developing games based on "Over the Hedge," which will be released next May, and "Shrek 3," which is set to debut in 2007. The company also holds the right to develop games based on "Madagascar 2," slated for release in 2008.


Activision and DreamWorks Animation have an existing agreement for video games based on "Shrek 2," "Shark Tale" and "Madagascar," which have collectively sold more than 10 million units worldwide across multiple platforms.


Shares of Activision rose 0.7 percent to close at $16.87 on Wednesday.

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