Wednesday, July 27, 2005

More Trouble for Dreamworks

A couple weeks after announcing a loss for the 2nd quarter and an SEC probe, Dreamworks is now looking to sell of their live-action division, maybe to GE's NBC/Universal. So, the three pronged attack of SKG (Spielberg, Katzenberg, and Geffen) is down to just K's part, as the Geffen end (the record company) was sold to Universal last year, and their stock is tumbling due to lower than expected DVD sales. They were expecting $0.07-0.09/share profit, and instead got $0.07/share loss. Ouch.

I'm a big Katzenberg fan dating back to his Disney days. IMHO, the loss of Jeffrey and Frank Wells are key to the floundering at the end of the "Disney Decade" and the eventual undoing of Eisner in our present day. Just reading "Keys to the Kingdom" and some similar books, it becomes apparent that this trio worked well together, filled each other's weaknesses, and contributed in building a great era for Disney, just as it becomes apparent that when the one guy was in charge, the bottom fell out. I hate to see this fall apart for Jeffrey, but it appears to be the future trend, as Pixar's DVD sales are down as well.

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