Update: NBC May Bid for DreamWorks

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NBC Universal is in discussions to acquire DreamWorks SKG, the privately held live-action film business left after the spinoff of DreamWorks Animation SKG Inc., according to news reports Thursday.


The Wall Street Journal and The New York Times reported Thursday that Universal was considering acquiring the studio founded in 1994 by Steven Spielberg, David Geffen and Jeffrey Katzenberg. The New York Post first reported the talks on Wednesday.


The board of General Electric Co., which owns NBC Universal, is scheduled to meet Friday.


As the Post said Wednesday, the talks are at an early stage and no agreement is imminent.


A few months ago, DreamWorks began exploring the possibility of selling the film business, and the talks with NBC Universal developed.


A DreamWorks spokesperson denied that DreamWorks is for sale.


The potential sale comes as the company’s animation unit , which was spun off last year into a separate publicly traded company , faces a falling stock price and a Securities and Exchange Commission investigation into the trading of its securities and the disclosure of its financial results.


The studio, which has won Oscars in the past for movies including “Gladiator” and “American Beauty,” has fared poorly at the box office in recent years.


A decision on the potential deal could be made by the end of the year.

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