• by Wayne Friedman , September 28, 2005

Talks that would have NBC Universal acquiring DreamWorks' film and TV fell through yesterday.

The proposed $1 billion deal would have given Universal control of DreamWorks' live-action film studio, including a 60-title library. Negotiations didn't include its animation unit, which was spun off as a public company. DreamWorks would have given NBC's Universal Studios' division another movie unit for content--adding to Universal Pictures and its smaller film budget division, Focus Features. Having DreamWorks in its stable would also have funneled to Universal new movies from noted filmmaker and part owner of DreamWorks, Steven Spielberg.

DreamWorks ended talks on the proposed $1 billion deal because of a disagreement about price specifics, according to executives. DreamWorks' senior executives also wanted to retain more creative control than NBC originally intended, according to executives.

DreamWorks SKG and NBC Universal decided on a two-month negotiating period. DreamWorks--one of the last "mini" major independent movie studios--was founded in 1994. Big DreamWorks movies included "American Beauty" and "Gladiator." But in recent years, it has scaled back a number of businesses, including TV production.