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Disney, DreamWorks distribution deal developing?

Several media outlets are reporting that DreamWorks may have to make a deal with Disney to secure some much needed quick cash along with distribution of their films. The L.A. Times reports that Universal today has dropped out of an already announced multi-year distribution deal with DreamWorks, a deal which was born after the DreamWorks/Paramount split. Nikki Finke’s Deadline Hollywood says that after Universal refused to change their deal with DreamWorks to include some cash (needed to save a deal DreamWorks has with another group), DreamWorks secretly went to Disney for help. After Universal got wind of this they opted out of the entire partnership leaving DreamWorks in need of a new distribution partner. Note that this may not include DreamWorks Animation which is technically separate from DreamWorks. It’s all a bit convoluted so be sure to check out the links for the details.

UPDATE: The N.Y. Times reports that the official word from Universal is: “Universal Pictures has ended discussions with DreamWorks for a distribution agreement,” it said. “Over the past several weeks, DreamWorks has demanded material changes to previously agreed upon terms. It is clear that DreamWorks’ needs and Universal’s business interests are no longer in alignment. We wish them luck in their pursuit of funding and distribution of their future endeavors.”

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