Talks between Dreamworks & Uni break down, now Disney?

[Grubert]

Here's the Universal statement:

"Universal Pictures has ended discussions with DreamWorks for a distribution agreement. Over the past several weeks DreamWorks has demanded material changes to previously agreed upon terms. It is clear that DreamWorks' needs and Universal’s business interests are no longer in alignment. We wish them luck in their pursuit of funding and distribution of their future endeavors.‬‪‬‪"

http://www.deadlinehollywooddaily.co...thin-48-hours/

I can report exclusively that financially desperate DreamWorks needed $250 million -- $100M immediately and $150M later in the second tranche -- to save its foundering Bollywood partnership. So Stacey Snider and Steven Spielberg demanded to change the terms of their deal with Universal already announced to the world so it would now include straight distribution and a $250M investment. But Universal balked. The studio was very reluctant to even invest $100M.

As the negotiations dragged on for weeks, that's when DreamWorks began secret talks with Disney. When I found out about the DreamWorks/Disney negotiations last night, DreamWorks suddenly began ducking my calls. Because Snider/Spielberg have been moving heaven and earth to make sure no one in the media found out the true details of just what a fiscal crisis their company is in. Also last night, I confirmed that Universal didn't even know about any DreamWorks talks with Disney until I informed the studio. You see, DreamWorks had hoped to play Disney and Universal off one another and snag the best deal for itself within the next 48 hours.

But this morning, Universal got the upper hand: it PULLED OUT of its deal with DreamWorks. "We weren't going further. This deal got to the point where it's not in our interest," a furious Universal bigwig just told me. "And then when you learn they're negotiating behind your back, it reflects upon what kind of partners you're getting into business with." I've also learned that, today, Snider phoned Universal Studios prez/COO Ron Meyer to apologize. "We had to do this. Our backs were against the wall. We couldn't tell anyone about our discussions with Disney." To which Meyer replied, "What you did was wrong on every level."

Now DreamWorks has to keep its fingers crossed that Disney will still come up with the cash that Spielberg/Snider need. And given Disney's reputation for hard-nosed negotiations, that's dicey without a rival bidder. Although not part of the DreamWorks discussions, I've been hearing for months that the Mouse House has been wanting to "unload" Miramax, and my sources believe that a DreamWorks deal will light a fire under Disney to sell the specialty unit that once belonged to Harvey and Bob Weinstein.