DreamWorks, LLC, also known as DreamWorks Pictures, DreamWorks SKG, or DreamWorks Studios is a major American film studio which develops, produces, and distributes films, video games, and television programming. It has produced or distributed more than ten films with box-office grosses totalling more than $100 million each. Its most successful title to date is Shrek 2.

It began as an ambitious attempt by media moguls Steven Spielberg, Jeffrey Katzenberg, and David Geffen to create a new Hollywood studio, but in December 2005, the founders agreed to sell the studio to Viacom, the parent company of Paramount Pictures. The sale was completed in February 2006. DreamWorks' animation arm was spun-off in 2004, into DreamWorks Animation SKG, as such it will remain independent of Paramount/Viacom, however its films will be distributed worldwide by Paramount. In 2007, the winner of the reality film competition On the Lot will win a million-dollar development deal with DreamWorks.

The company was founded following Katzenberg's forced resignation from The Walt Disney Company in 1994. At the suggestion of Spielberg's friend, the two made an agreement with long-time Katzenberg collaborator Geffen to start their own studio. The studio was officially founded on October 12, 1994 with financial backing of $33 million from each of the three main partners and $500 million from Microsoft co-founder Paul Allen.

In 1999, 2000 and 2001, DreamWorks won three consecutive best picture Oscars for American Beauty, Gladiator and A Beautiful Mind.

DreamWorks Records, the company's record label (the first project of which was George Michael's Older), never lived up to expectations, and was sold in October 2003 to Universal Music Group, which operated the label as DreamWorks Nashville. That label was shut down in 2005 when its flagship artist, Toby Keith, departed to form his own label.

The studio has had its greatest financial success with movies, specifically animated movies. DreamWorks Animation teamed up with Pacific Data Images in 1996 to create some of the highest grossing animated hits of all time, such as Antz (1998), Shrek (2001), its sequel Shrek 2 (2004), Shark Tale (2004), Madagascar (2005), Over the Hedge (2006), and Flushed Away (2006). Based on their success, DreamWorks Animation has spun off as its own publicly traded company. In fact, PDI/DreamWorks has emerged as the main competitor to Pixar in the age of computer-generated animation, and is based in Redwood City, California.

In recent years DreamWorks has scaled back. It stopped plans to build a high-tech studio, sold its music division, and only produces one television series, Las Vegas.

In December 2005, Viacom's Paramount Pictures agreed to purchase the live-action studio. The deal is valued at approximately $1.6 billion, an amount that includes about $400 million in debt assumptions. The company completed its acquisition on February 1, 2006.

On March 17, 2006 Paramount agreed to sell the DreamWorks live-action library to a group led by George Soros for $900 million. Paramount will retain distribution rights, as well as various auxiliary rights, including music publishing, sequels, and merchandising - this includes films that had been made by Paramount and DreamWorks, so now Paramount will have worldwide distribution rights to these films. The sale was completed on May 8, 2006.

Credits by www.wikipedia.org