Paramount working on Dreamworks library sale
Filed under: Deals, Steven Spielberg, Home Entertainment
Earlier this week, David Geffen told the trades that speed was the tie-breaking factor in his decision to sell Dreamworks to Paramount. Brad Grey and co. are certainly following through with that decisive virtue: they've already signed a term sheet to sell Dreamworks' home video library to two private groups in exchange for something in the neighborhood of $900 million in equity. The library was a key factor in the deal. To put it bluntly, without the cash the home video titles are going to bring in, Paramount simply couldn't afford Dreamworks' $1.6 billion purchase price. But they also knew it would be an easy library to unload, chock full as it is with "repeatable" neo-classics (Old School) and prestige productions (American Beauty).
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Reader Comments (Page 1 of 1)
12-26-2005 @ 3:45PM
Ben Feing said...
Apparently Paramount was unable t assemble a slate of films for 2006 and 2007 so by buying Dreamworks they inherit their completed movies and development. This deal is really about the failure of Paramount's new management to do their jobs.
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