Paramount Pictures - Paramount To Net $900 Million For Dreamworks Library

Paramount is likely to announce as early as today (Friday) that it has reached an agreement with Soros Fund Management to sell its 58-title DreamWorks library for about $900 million. The deal thus reduces Paramount's cost in acquiring DreamWorks for $1.6 billion, although some critics of the deal -- who claim that Paramount overpaid for the studio in order to make a preemptive strike against Universal, formerly DreamWorks' reluctant suitor -- noted that even the $700-million cost (not including legal and other acquisition fees) effectively raises the costs of future DreamWorks films unreasonably. Published reports said that Paramount will retain the right to distribute DreamWorks titles for a flat 8-percent fee, keep a minor stake in the library, and has an option to buy back the library at a later date.

17/03/2006