Viacom Reportedly Sells Dreamworks Library

Paramount Pictures parent Viacom Inc. is expected to announce today that it has sold the live action film library of DreamWorks SKG for $900 million to a private equity group headed by billionaire George Soros, a person with knowledge of the matter said.

A Paramount official declined to comment late Thursday.

Soros’ group was one of several parties interested in buying the catalog of 59 titles, which includes such Oscar-winning films as “Gladiator” and “American Beauty,” as well as hits “Catch Me If You Can” and “The Ring.”

Paramount was hoping to fetch as much as $1 billion for the library.

The sale helps Paramount defray some of the $1.6 billion it paid in cash and assumed debt in December to acquire the live action operation of DreamWorks, which was founded in 1994 by director Steven Spielberg, music mogul David Geffen and veteran studio executive Jeffrey Katzenberg.

As part of the library deal, Paramount will retain the right to distribute DreamWorks titles worldwide for an 8% fee. The studio also will keep a minor stake in the library and has an option to eventually buy it back.

When Paramount acquired DreamWorks, it also cut a seven-year deal with the publicly traded DreamWorks Animation to release its movies. The company produced such hits as “Madagascar” and the “Shrek” series.