Spielberg May Split From Paramount

Angry director could pack up DreamWorks and leave studio
By Heather McPherson,  Newser User
Posted Jul 20, 2007 10:23 AM CDT
Steven Spielberg arrives at St. Matthews Cathedral in Washington, May 1, 2007 to attend the funeral service for Jack Valenti. (AP Photo/Susan Walsh)   (Associated Press)
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(Newser) – Steven Spielberg is so disillusioned with Paramount Pictures that he may bail on the studio, which less than 2 years ago bought the director's DreamWorks for $1.53 billion. The legend behind Jaws, E.T.,  and Transformers is furious that Paramount takes credit for his movies and mistreats his friends, including firing best bud Tom Cruise, Business Week reports.

The move, which can't come before Spielberg's 3-year contract expires in late 2008, would devastate Paramount. Studio chief Brad Grey's attempts to make peace with the three-time Oscar winner include donating $1 million to Spielberg's Shoah foundation, but the damage may already be done. Says one industry exec: "If it continues like it is, they're gone."