Paramount Pictures to buy DreamWorks

LOS ANGELES (AP) -- Paramount Pictures said Sunday it had agreed to buy independent film studio DreamWorks SKG Inc. in a deal worth $1.6 billion in cash and debt.
The deal strengthens Paramount's live action film business and gives the unit of Viacom Inc. access to DreamWorks' library of 59 films, including Oscar-winners "American Beauty" and "Gladiator."
It also marks the end of an 11-year dream for Hollywood moguls Steven Spielberg, Jeffrey Katzenberg and David Geffen, who had ambitious goals for DreamWorks that included television, music, films and the Internet.
Brad Grey, Paramount's chairman and CEO, said in a statement that enhancing Paramount's pipeline of pictures is a "key strategic objective in restoring Paramount's stature as a leader in filmed entertainment."