EXCLUSIVE: DreamWorks May Stay Put With Universal — re: Distribution

Though no declarations have been made, an inside source at DreamWorks tells FBLA that the company is likely to stay put with Universal for its distribution deal .

“We’re actually on the Universal lot in the old Amblin studio space,” the source said. “It’s just easier to maintain with Universal. Paramount will still have its cut on a number of DreamWorks projects, but though nothing is set in stone, it looks like it will probably be Universal.”

DreamWorks recently severed itself from the Paramount deal that had been cut by David Geffen, Steven Spielberg and Stacey Snider. Take Geffen out of that mix and you have the remaining two principals still involved with DreamWorks: Spielberg and Snider.

That pair negotiated and was awarded a $500 million deal with India’s Reliance to bankroll six to eight films a year.

Those films will not be out-and-out blockbusters, but rather limited-budget pieces that can turn a profit, the source said. The example that is always given is: Sam Mendez’s “American Beauty,” which not only came in on a low, low budget, but won its share of awards and attention.

DreamWorks publicity reps were expectedly close-mouthed about distribution for the studio.

Stay tuned. More to come in the next week.