Imagine, DreamWorks Discuss Merger

28-Apr-00

Imagine Entertainment and DreamWorks are not only gobbling up small Internet companies around the country for their Pop.com joint venture (stay tuned for announcements), but the two have been in serious talks since mid-February about merging their companies. Insiders said that DreamWorks and Imagine have gone as far as discussing possible structures and roles for the principals. Imagine, which has more than a year and a half left on its contract with Universal Pictures, first approached the studio about early negotiations but were rebuffed. Insiders said that the relationship between Imagine and Universal ""has never been better."" Both the studio and its parent Seagram feel that Imagine's deal (although a major supplier of commercially successful product) is hard to shoulder financially. No decision is expected immediately as many of the negotiating crew at DreamWorks are out of the country on business or away on vacation. One of the main concerns is how the two companies' TV operations might mesh. Neither DreamWorks nor Imagine would confirm the talks.Source: The Hollywood Reporter