According to reports in The Hollywood Reporter and Variety, Universal and DreamWorks have parted ways. Just four months ago the two companies had come to an arrangement in which Universal would distribute DreamWorks Pictures' films following that company's break from Paramount Pictures. Now the deal has gone sour, and DreamWorks is out looking for a new partner to handle its films.
Variety reports the breakdown in talks between DreamWorks and Universal came when DreamWorks requested a modification of the terms as a result of problems raising enough funds to finance its annual load of films. Universal released a statement regarding the end of their relationship with DreamWorks: "Universal Pictures has ended discussions with DreamWorks for a distribution agreement. Over the past several weeks DreamWorks has demanded material changes to previously agreed upon terms. It is clear that DreamWorks' needs and Universal's business interests are no longer in alignment. We wish them luck in their pursuit of funding and distribution of their future endeavors."
DreamWorks may not be without a partner for long. The company is moving forward with negotiations with Walt Disney Studios Co.
Source: The Hollywood Reporter, Variety
