Paramount Pictures has closed its acquisition of distribution entity DreamWorks Studios and is set to kick off its seven-year DreamWorks Animation distribution deal with the May 19 release of Over the Hedge. The news comes as Paramount completes its $1.6 billion acquisition of DreamWorks SKG, the troubled studio founded by Steven Spielberg, Jeffrey Katzenberg and David Geffen.
Last month, Paramount acquired worldwide theatrical, home entertainment and television distribution rights to DreamWorks Animation films. The studio will be responsible for the marketing and distribution of DreamWorks Animation films and will earn the same 8% distribution fee previously paid to DreamWorks Studios. In turn, DreamWorks Animation received $75 million in cash, which it has used to repay debt.
Katzenberg will continue to head DreamWorks Animation, while Spileberg and Geffen retain in their respective roles as producer/director and chairman of DreamWorks.
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