DreamWorks and Disney to announce movie deal: paper
NEW YORK |
NEW YORK (Reuters) - Walt Disney Co is expected to announce a movie distribution deal on Monday with DreamWorks SKG, the movie company controlled by Steven Spielberg, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
The Journal said Disney will distribute around six movies a year for DreamWorks. It will also likely provide some form of financing for DreamWorks, either in the form of a loan or a line of credit of at least $150 million, the paper said.
Under the deal, Disney would collect a distribution fee of at least 8 percent from DreamWorks, the paper said.
DreamWorks has produced movies such as "Saving Private Ryan" and the action hit "Transformers," but has been looking for cash since splitting off from Paramount Pictures last year and taking itself private with the backing of Indian media conglomerate Reliance ADA.
DreamWorks SKG and Universal Pictures severed their film distribution pact on Friday.
Universal, a unit of the NBC Universal media division of General Electric Co, said it broke off "several weeks" of talks on a distribution deal after the smaller DreamWorks "demanded material changes to previously agreed upon terms."
(Reporting by Michael Erman, Editing by Ian Geoghegan)
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