Paramount, DreamWorks formally separate

October 5, 2008 3:35:19 PM PDT
Paramount Pictures and DreamWorks say they are formally separating following DreamWorks' deal to partner with Reliance Entertainment of India.In a statement Sunday, the companies' principals say DreamWorks will take the lead on some projects, which Paramount can choose to co-finance and co-distribute. Of the projects that remain at Paramount, the new company can co-finance those attached to DreamWorks' star director Steven Spielberg.

Most DreamWorks employees are expected to be hired at the new company being set up in partnership with Reliance, with which DreamWorks announced a financing deal last month.

Paramount, a subsidiary of Viacom Inc., bought DreamWorks for $1.6 billion in 2006.