The Dream is Over

The LA Times reports that two years into the deal where Paramount bought out Dream Works SKG Steven Spielberg and David Geffen are not pleased with how the partnership is developing.

Smarting from seller's remorse, the DreamWorks principals are expected to bolt late next year. Geffen has been telling people in Hollywood that he and Spielberg would look for a new backer and studio home as soon as they are free to do so.

Geffen plans to exercise an out in his contract that frees him to leave next year. If he exits, Spielberg has the right to follow him out the door. Stacey Snider, who runs DreamWorks, can walk if Spielberg departs.

Any breakup is sure to be messy for both sides. Spielberg is knee-deep in movie productions at the Melrose Avenue studio. He and his DreamWorks partners would be forced to leave behind hundreds of projects, including a planned movie version of Alice Sebold's bestseller, "The Lovely Bones," to be directed by Peter Jackson of "The Lord of the Rings" fame. Spielberg pursued that property for many years. They would also abandon key executives at DreamWorks as well as those they installed in senior positions at Paramount. .

I'm sure this news article is causing concern among producers and writers who have projects lined up in Paramount.