News.com Mobile
for PDA or phone
Login: Forgot password? | Sign up

Viacom nearing deal to acquire DreamWorks

Published: December 9, 2005, 5:31 PM PST

Viacom is close to acquiring DreamWorks, the privately held studio co-founded by director Steven Spielberg, in a transaction that could take place as soon as this weekend, a source familiar with the plan said Friday.

Viacom's board of directors has approved Paramount Pictures' decision to make an offer, the source said. Details on terms and financing were not immediately available.

DreamWorks had been in on-again, off-again talks with both Paramount and General Electric's NBC Universal unit, seeking $1 billion in cash and the assumption of debt.

DreamWorks turned out a number of critically acclaimed and successful films, such as "Saving Private Ryan," but had stumbled recently with the big-budget flop "The Island.

The company also has a library of about 60 titles and a lucrative distribution deal with its publicly traded animation arm, DreamWorks Animation, which produced the blockbuster computer-generated films "Shrek" and "Shrek 2."

DreamWorks' other founders are music mogul David Geffen and former Walt Disney Studios President Jeffrey Katzenberg, who now heads the animation company.

Paramount's new chief, Brad Grey, is a former talent manager who was brought in by Viacom with a mandate to shake up the studio after several years of weak results at the box office.

The Wall Street Journal, which first broke news of the renewed talks between Paramount and DreamWorks, reported on Friday that Paramount had "forged a deal" for the studio.

Viacom is splitting its fast-growing cable and film divisions from more mature CBS broadcast and Infinity radio businesses to appeal to different classes of investors.

The company said it expects to complete the split by the end of 2005.

Story Copyright © 2005 Reuters Limited. All rights reserved.

TalkBack

No discussion exists, click here to start it.

advertisement

Did you know?

Select a tab below to set your default view.

Scan the 15 newest and most read stories on News.com right now. Learn more

Updated: 11:02 PM PST
View as:
A camera that has it all? Well, almost A little sleuthing unmasks writer of Wikipedia prank Prize in Indian talent search: A year on Bill Gates' team Sprint to offer full-length movie downloads Garages hold mythic power in Silicon Valley China overtakes U.S. as supplier of IT goods Intel calls MIT's $100 laptop a 'gadget' Sober code cracked Scientific quests: Better bananas, nicer mosquitoes Creative wants to make Apple pay Power could cost more than servers, Google warns A TV star is born on the Net on $20 a day Philips bringing cell phone TV to states Upstart aims to bring HD camcorders to the masses AOL co-founder calls for split of Time Warner
Legend:
Older
Newer
Larger boxes indicate hotter stories.

Daily spotlight

Video: A video slam-dunk

Here's a look at the tech behind those TV and online highlights of pro basketball games, in a narrated video produced by the NBA and Silicon Graphics Inc.

Photos: Gizmos made in Japan

Japan is still a leader in product design and innovation. Here are some new and notable gadgets.

Video: "The power to organize" online

Meetup.com founder and CEO Scott Heiferman says Meetup is spreading beyond America. The service, Heiferman says, is helping "make the world a friendlier place."

Innovations battle natural calamities

Scientists hope integrating cutting-edge technology projects will help predict and mitigate natural disasters.

Debating Wikipedia's open-source label

High Impact The online encyclopedia is a broadly communal effort, but it's not run the same way as open-source software.

Police blotter: Nude 'profile' yields Yahoo suit

Woman says ex-boyfriend posted nude photos and her phone number in a Yahoo Personals profile. She sued for $3 million.

High-tech animation in indies' grasp

Competing with digital toon powerhouses like Pixar isn't easy. But cheaper tech, outsourcing are making it possible.

Ogre to slay? Outsource it to China

Affluent online gamers are paying workers at Chinese game-playing factories to play games' early rounds for them.

Video: The incredible, shrinking glaciers

This NASA-produced video is a dramatic and colorful look at our planet from high above, and the changes that are taking place.

Image: AOL searches for the stars

TMZ.com, AOL's new online magazine promises inside scoops on Hollywood's hottest stars.

Clock's ticking on new Sober onslaught

Mass-mailing worm is programmed to download new instructions in January, which could indicate a new outbreak.

Photos: New animal discovered in Borneo

A creature that looks like a cross between a cat and a fox is photographed in the rainforest.

advertisement
CNET.com
Copyright ©2005 CNET Networks, Inc. All Rights Reserved. Privacy Policy | About CNET Networks | Jobs | Terms of Use