DreamWorks Animation signs five-year deal with 20th Century Fox

Shrek and Po have found a new home.

DreamWorks Animation, the Glendale studio behind such hit animated franchises as “Shrek,” “Kung Fu Panda” and “Madagascar,” has signed a five-year deal with 20th Century Fox, which will distribute its movies beginning next year.

Fox replaces Paramount Pictures, DreamWorks’ partner since 2006. The two companies’ relationship began souring in 2011 as DreamWorks Chief Executive Jeffrey Katzenberg sought to pay a lower fee and Paramount Chairman Brad Grey formed a competitive animation unit at his studio.

DreamWorks hired former Disney distribution President Chuck Viane last fall to advise the studio on its options, including the possibility of distributing its own movies. By this summer, however, the company abandoned the option of releasing its own films and focused on intense talks with Fox and Sony Pictures.

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-- Ben Fritz and Richard Verrier, Los Angeles Times