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DreamWorks in Talks With Sony on Distribution, Reuters Says

DreamWorks Animation SKG Inc., maker of the “Shrek” series, is in talks with Sony Corp.’s movie unit about distributing its films, Reuters reported, citing a person with knowledge of the discussions it didn’t identify.

Viacom Inc.’s Paramount Pictures has rejected a request from DreamWorks Animation Chief Executive Jeffrey Katzenberg to lower the fee DreamWorks pays on film revenues generated at movie theaters and from DVD sales to 7 percent from 8 percent, Reuters said. Their agreement expires next year, Reuters said.

A phone call to Sony's Tokyo headquarters outside business hours by Bloomberg News went unanswered.

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