In a deal signed last Friday, DreamWorks, the independent studio founded by director Steven Spielberg, producer Jeffrey Katzenberg and music boss David Geffen, was sold to Paramount Pictures for $1.6 billion. After months of negotiations with Universal (Spielberg’s long-time base and current DreamWorks distributor), a deal could not be completed with Universal’s owners, NBC/GE. Conversely, the deal with Paramount was put together in a week and will see DreamWorks fold into the company with which it has often tied over the years on big budget, split-deal co-productions such as Deep Impact, The Stepford Wives and Saving Private Ryan. Paramount is believed to be looking for a buyer of the film library, while they will retain distribution rights. The sale also includes the distribution rights to DreamWorks Animation’s projects and exclusivity to use future characters in TV shows, beginning with Over The Hedge, opening next summer. DWs Animation will make $75 million from the sale, which it will use to pay down debt. Paramount will receive the same 8% distribution fee that had previously been paid to DWs proper. DreamWorks Animation said it will collaborate on new TV programming for Paramount-owner Viacom’s cable TV networks, including MTV, Nickelodeon and Comedy Central. DWs Animation head Katzenberg, who was due to meet with Viacom execs last night, stated that “Certainly, Madagascar and Shrek offer great possibilities”, while adding that Nickelodeon is “probably the most far-reaching distribution platform for children in the world. It’s a very valuable thing for us”. Read further and full details from a variety of stories on Google News.