Stacey Snider and Steven Spielberg on Monday said their new motion picture company has signed a seven-year worldwide distribution deal with Universal Studios for approximately 6 films per year starting in 2009.
The DreamWorks SKG principals recently departed Paramount Pictures to partner with Reliance Big Entertainment on the new picture company. Reliance Big will distribute the new company's projects in India. Universal will take an 8 percent distribution fee for U.S. distribution, according to a Dreamworks statement.
The new company is a continuation of DreamWorks Studios formed in 1994 by Spielberg, Jeffrey Katzenberg, and David Geffen before it was acquire by Paramount Pictures in 2005. Geffen negotiated the deal on behalf of the new company, but will not be a part of it.
DreamWorks still has contractual obligations to complete around 30 pending projects with former Paramount, but Universal could share domestic distribution on some of those films, Snider told the Wall Street Journal.
Spielberg had a two-decade career with Universal as a director until he formed DreamWorks. "We couldn't be more pleased to welcome the DreamWorks team back to Universal and our long history of success together will continue," said Universal Studios President Ron Meyer in a statement.
Dreamworks shares closed up $2.76, or 11 percent, to $22.99 on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.