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DreamWorks
Animation SKG will begin operating under its new seven-year
distribution deal with Paramount Pictures. The deal will begin
with the rights to distribute DreamWorks Animation films in
theatrical, home entertainment and television markets on a
worldwide basis beginning with the next release, Over the
Hedge.
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As
previously announced, the new agreement was contingent on
the closing of Paramount's acquisition of the company's previous
distribution partner, DreamWorks Studios.
Paramount Pictures will be responsible for the marketing and
distribution of DreamWorks Animation films and will earn the
same eight per cent distribution fee that had previously been
paid to DreamWorks Studios.
The
new agreement with Paramount expires by the end of 2012, which
is two years longer than the original distribution deal with
DreamWorks Studios. As a result of the new deal, DreamWorks
Animation received $75 million in cash which it has used towards
the repayment of debt.
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