Spielberg/Dreamworks For Dummies
Here is a rundown of all the essential information that you should know about the Spielberg/DreamWorks situation, and the current developments by Steven to raise a billion dollars for independence:
In 1994, Steven Spielberg founded DreamWorks with Jeffrey Katzenberg, and David Geffen (forming the SKG present on the bottom of the DreamWorks logo) and a $500 million investment from Microsoft co-founder Paul Allen.
Over the next fourteen years, Spielberg directed eight films under his new studio (Amistad-Munich), a streak that ended in May 2008 with Indiana Jones and the Kingdom of the Crystal Skull.
DreamWorks won three consecutive best picture Academy Awards starting in 1999 with American Beauty (followed by Gladiator and A Beautiful Mind).
Despite critical acclaim and a bevy of award winning films, DreamWorks came close to bankruptcy twice, primarily due to the failure of two large budget films: Sinbad: Legend of the Seven Seas and The Island.
Spielberg wanted to sell DreamWorks to Universal, a movie studio which he considered home most of his career. In fact, Steven’s Amblin offices are still located on the Universal backlot. Parent company G.E. lowered its offer by $100 million, forcing the founders to sell the studio to Viacom, the parent company of Paramount Pictures in February 2006. The deal was valued at approximately $1.6 billion, an amount that included about $400 million in debt assumptions. As part of that agreement, the founders agreed to three-year contracts. DreamWorks Animation, run by Jeffrey Katzenberg, remained an independent company with a deal to have its movies distributed by Paramount until 2012.
Paramount set a new record in July 2007 by becoming the first movie studio to hit $1 billion for the year, an achievement almost entirely due to films from the DreamWorks pipeline. DreamWorks’ movies accounted for about two- thirds of Paramount’s box office
The founders became increasingly unhappy about their arrangement with Paramount, believing that Viacom was not sufficiently appreciative of their contributions.
Geffen was critical of Viacom and its chief executive, Sumner M. Redstone in a November 2007 Vanity Fair article: “Redstone, he is accustomed to bullying people. And I will not be bullied. There is no fight I will run from. I am absolutely unafraid of Sumner Redstone.” … “It is my job to look out for Steven Spielberg and Jeffrey Katzenberg and our employees and the people we are in business with. I chose to sell this company to Paramount. It has turned out to be a poor choice.”
Viacom announced it would not renew DreamWorks’ contract. Spielberg’s contract runs until 2010, but he possesses the ability to terminate it early at year’s end. Chief executive Stacey Snider and chairman David Geffen have similar escape clauses. On May 1st 2008, a window opened up, allowing them to bargain with other studios about taking their services elsewhere.
What’s at stake: Spielberg and Geffin don’t own the rights to the DreamWorks name, but neither does Paramount. If the duo were to leave, Katzenberg, who runs DreamWorks Animation, could withdraw rights to the name from Paramount and grant them to Spielberg. The duo no longer hold ownership of their past catalog and current development deals. However, according to THR, “Spielberg’s rights regarding involvement on sequels could trigger negotiations over which films he brings with him and which would remain under Par’s control.” Its also likely that the team would lose most, if not all, of their staff.
On June 10th 2008 Spielberg announced that he hopes to raise more than $1 billion in third-party financing to reinvent DreamWorks as an independent company.
Universal Pictures realizes their mistake in losing their bid for the company to Dreamworks a decade earlier and enters into a bidding war with Paramount, Universal, Disney and Fox for the rights to distribute future DreamWorks movies. Warner Bros has decided to sit this one out.
Bono Voyage for Brangelina
Life continues to be a beach for the Brangelina brood in the French Riviera.
Brad Pitt, Angelina Jolie and their Benetton-friendly family made nice in Nice Sunday, spending an hour soaking up the surf.
The gang was all there for the fun in the sun, with Maddox, Pax, Zahara and even the increasingly hermetic Shiloh present and accounted for. The fam logged sand time with U2 guitarist The Edge and later visited Bonoboth rockers have homesteads in the area.
Jolie and Pitt are shacked up in France awaiting the Cannes Film Festival and a new stork delivery, staying at a home owned by billionaire Microsoft cofounder Paul Allen.
"The Edge knows Paul Allen really well and invited the family down for lunch," a source close to the couple told News. "It was a lovely sunny day and so they all went and hung out on the beach like regular people."
"Pax was obsessed with catching crabs and that's what Pax, Brad and some local kids did while Angie spoke to The Edge."
The beach excursion capped off an otherwise busy weekend. Earlier, Pitt, Jolie and Zahara took to the skies for a house-hunting helicopter ride, spending several hours in Monte Carlo Saturday viewing a large property.
"They have heard that in Monaco they don't really allow paparazzi and that the Monegasque police arrest them [photographers] if they bother celebrities," the insider told News. "So they've started looking over there.
"Brad loves it therehe went to the Grand Prix in Monaco four years ago, and has told Maddox and Pax how great it was, but Angie seems to prefer Provence…the idea of being able to vacation in peace like any other family really appeals to them."
Jolie is considering delivering at Monaco's Princess Grace Hospital.
"The hospital is one of the best in the world, and she can fly there by helicopter. It's safe and no paps will be able to trail them there."
Brangelina’s Stuff Follows Them to France
Home is where the heart is. But it never hurts to have your stuff there, as well.
A source close to the couple tells News that Brad Pitt and Angelina Jolie have started importing the little thingsclothes, toys, the Ducatiacross the Atlantic after apparently opting to stay put at Microsoft cofounder Paul Allen's villa in Saint-Jean Cap-Ferrat on the French Riviera.
While the couple have been house-hunting in nearby Monte Carlo and logged time this weekend in Nice visiting Bono and The Edge, they're "more than content to just stay put," at least until the birth of their second biological child and fifth overall, the insider said.
"Everything feels right. The kids are happy with the seaside being just down the road and having a pool in the garden, and Brad's dying to get out and explore the French countryside on his bike like he did last summer when they were vacationing in the West of France."
"They've just had one of the happiest weeks that they've had together as a family for ages," the source added.
And whatever the Jolie-Pitt clan think they might need for the next few months that couldn't fit on the private jet, they've had shipped to Allen's estate, including Pitt's Ducati motorbike.
"Taking the kids over for Sunday lunch and having a playdate with Bono's kids was so nice for them," our source says.
"So many other celebrities have homes down there, too, so they fit right in. There's a whole cool, English-speaking community down there, so they have a balance of it being French and cultured, but also they can take the kids to a doctor and explain what's up with them in English if needs be.
"They've even been able to buy the kids favorite snacks in from a shop there that delivers American food and drinks to your home."
Brad, Angelina Relocate to Riviera
The Brangelina brood has hit France, scouting locations for its next big project: Baby-delivering.
Angelina Jolie, Brad Pitt and all four kids are holed up in Microsoft cofounder Paul Allen's Villa Maryland in Saint Jean Cap Ferrat on the French Riviera.
The family arrived early Monday night via private jet at Nice airport with two nannies and three security guards says an onlooker.
As News first reported last month, Angelina is due this summer and plans on having her baby in France.
"It's a breathtaking villa with views out over the Mediterranean [Sea] and they have roughly 12 staff on hand at all times to get them anything they need," says a source.
"They've stayed there before and love the house, it's very private and no one can see in.
The insider says that Jolie, who has two films opening at next month's Cannes film fest, will kick back while Pitt goes house-hunting.
"They love France and will now be here until after the babies are born and Angie is looking at Marseille hospitals as a potential place to give birth."
They also stayed at Paul Allen's villa for a week during Angelina's pregnancy with Shiloh in the early summer of 2006.
Jolie met Allen, who helped bankroll DreamWorks, when she was filming Shark Tale in 2004.