Dreamworks to head to Fox

Dreamworks SKG one of the big powerhouses in CGI animation in Hollywood is now moving distributors from Paramount to Fox.

            This deal came when Dreamworks promised Wall Street that it would move distributors due to underperforming stock. Sony had originally attempted to acquire the animation company but was not able to close the deal so Fox was able to pick up the slack and acquired the company. In the deal Dreamworks gets to keep the same rate of payment as they did with Paramount of 8%, which is advantageous for Dreamworks.

            This will be the second big animation company to come under Foxes roof since they already owned blue-sky entertainment. This should mean good things for the company since they will be able to get the expertise and marketing that a distribution company that understands animation should have after a few years with them straight out of the box. This will also allow them to be still very free since too much control by fox directly could cause Dreamworks and Blue Sky’s movies to start to feel too much alike which wouldn’t be good for any of the companies involved.

            All of this including the lowered costs through more efforts in digital distribution of animated movies will hopefully mean good things for Dreamworks and its stocks which have not been doing as well as they have in the past. This accompanied with the fact that both companies seem to be happy with the deal for now means good things on the horizon.

            Even though this does seem to be a move to get better standing in Wall Street it may help their credibility in the public eye as well. This  will put Dreamworks in an interesting position showing they are willing to make the move to whatever needs to be done to make the stockholders happy rather than stay with the same distributor forever like their main competitor Pixar as chosen to do.