Paramount Sells DreamWorks Library (original) (raw)

Viacom‘s Paramount Pictures has greenlighted a $900 million movie deal.

Viacom, led by Sumner Redstone, announced an agreement on Friday to sell the film library of DreamWorks SKG to a pair of funds, one run by financier George Soros and the other an affiliate of Dune Capital Management. (Dune Capital is the credit-related business that the Soros fund spun off in 2004.) The transaction, which Viacom expects to complete in April, covers the rights to 59 movies, including “The Gladiator,” starring Russell Crow.

The deal goes a long way toward defraying the 1.6billionpricethatParamountpaidtoacquireDreamWorksinDecember.ViacomsaidFridayitnowexpectedthenetpurchasepriceforDreamWorkstocomeinat1.6 billion price that Paramount paid to acquire DreamWorks in December. Viacom said Friday it now expected the net purchase price for DreamWorks to come in at 1.6billionpricethatParamountpaidtoacquireDreamWorksinDecember.ViacomsaidFridayitnowexpectedthenetpurchasepriceforDreamWorkstocomeinat600 million.

Viacom and Mr. Soros will enter into a five-year agreement for Paramount to distribute the films in the library. Viacom also said it would keep a minority stake in the library and retain the right to reacquire it in five years.

Go to Viacom Press Release »
Go to Reuters Article »
Go to Article in The New York Times »