DreamWorks Out at Universal, Talking to Disney

DreamWorks and Disney are expected to announce Monday they have struck a deal for Disney to distribute the studio’s films.

Talks were ongoing through the weekend on the deal, which would replace one DreamWorks had agreed to with Universal in October but never signed.

Variety reports that the deal with Universal fell through after DreamWorks requested changes due to changing financial conditions and difficulty it was having raising funding for the agreed upon number of pictures per year.

DreamWorks was founded in 1994 by Steven Spielberg, Jeffrey Katzenberg and David Geffen, who agreed to sell the company to Viacom/Paramount in 2005.

DreamWorks split from Paramount last year, leading it to seek the distribution deal with Universal. The company’s animation arm, DreamWorks Animation, has produced the successful Shrek films and has the 3-D feature Monsters vs. Aliens due out in March.

Terms of the DreamWorks-Disney deal are expected as soon as the deal is finalized, which could come as early as Monday.