June
18
DreamWorks Looks to India, GE Loses Value
DreamWorks is nearing a financing deal with deep-pocketed Indian company Reliance, which has been looking to get into bed with Hollywood. Hollywood had expected Universal to be DreamWorks' likely future studio home, where partner Steven Spielberg has kept offices for decades.
On June 2, Peter Bart reported on his blog that DreamWorks was looking to leave Paramount and raise financing. Patrick Frater reports on Reliance and the sixth richest man in the world, Anil Ambani. Here are the LA Times and The Wall Street Journal.
The question is, who is going to be the future owner of Universal? GE's low stock price leaves the stability of Universal, which is well-run by Ron Meyer, Marc Shmuger and David Linde, in question. The studio is expecting a strong summer (led by Mummy 3, Hellboy 2 and Wanted). But that's irrelevant to Wall Street; analysts are rumbling that GE has lost so much value that the multi-conglomerate should shed some assets. Universal is the appendage that sticks out and looks like it doesn't belong with the electronic giant's other core businesses. It could be tough for Jeffrey Immelt to resist the tide of stockholders and investors who want the stock to surge again.
Immelt's the guy who lost DreamWorks in the first place by dragging his feet when Meyer could have made a deal. David Geffen then hastily took the deal to Paramount. DreamWorks was an excellent fit with Universal, which also lost Stacey Snider, then chairman of the studio under Meyer, when she followed Spielberg to Paramount. She's expected to be made a DreamWorks partner.
UPDATE: Some think that DreamWorks wants to buy Universal. But if Geffen wants to leave the business, why would he buy a major studio? Peter Bart weighs in.
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David Poland had already thought that Dreamworks may buy Universal in the future..... Looks like it may be true....
Posted by: marychan | June 18, 2008 at 11:31 AM