Turmoil Within DreamWorks Hierarchy

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Less than two years after Steven Spielberg and his partners sold DreamWorks SKG to Viacom Inc.’s Paramount Pictures for $1.6 billion, a divorce appears to be inevitable, the Los Angeles Times reports.


Spielberg and partner David Geffen have felt slighted that they haven’t received more credit within Viacom, given the success of their movies. Recent hits such as “Transformers” and “Blades of Glory” have lifted Paramount out of the doldrums and heightened resentment that has been mounting between the DreamWorks founders and the company’s owners since the deal went down 19 months ago.


Big egos often collide in Hollywood. In this case, Geffen has butted heads with Viacom’s 84-year-old chairman, Sumner Redstone. Internal power struggles, backbiting, perceived snubs and accusations of credit grabbing have also marred the marriage.


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.


Read the full Associated Press story

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