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DreamWorks Gives Paramount the Boot, Makes New Deal with Fox

In a move that will go down in animation history, Jeffrey Katzenberg and his DreamWorks studio have ended their distrubution contract with Paramount after six years. The animation studio responsible for Shrek, Kung Fu Panda, and Madagascar has signed a new deal with Fox after talks with Paramount went south. Paramount did not want to lower it’s cutback and it had also formed its own animation department. Fox will distribute DreamWorks films for 8% (same as Paramount), but will receive a lower percentage on digital distribution. Fox will become a bigger animation player with this deal as the company already owns Blue Sky Studios of Ice Age fame. Two big studios equals good profit.

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