LONDON (Brand Republic) 鈥 AOL Time Warner is pursuing a deal with DreamWorks, which could see the film and entertainment company being folded into the media and internet behemoth.
AOL Time Warner CEO Gerald Levin admitted to The Big Picture conference, hosted by Salomon Smith Barney/Broadcasting & Cable, that the company鈥檚 talks with DreamWorks had gone further than just a distribution deal, as the industry had believed.
Industry insiders said that DreamWorks -- founded by Steven Spielberg, Jeffrey Katzenberg and David Geffen six years ago -- is unlikely to sell out entirely but could be tempted to join the AOL Time Warner stable in return for an equity stake and distribution over AOL鈥檚 network.
DreamWorks鈥 films, including Gladiator and American Beauty, are currently licensed to Vivendi Universal for distribution. Vivendi Universal鈥檚 TV and film chief Pierre Lescure said the French giant would not get involved in a high-priced bidding war with AOL Time Warner for the rights to distribute DreamWorks鈥 films.
At the same conference, Levin took the opportunity to indicate that his retirement might not be far off. The 62-year-old said, 鈥淵ou will not have to carry me out of AOL Time Warner. I acknowledge change. It鈥檚 important to realise that, when you reach a point, you should really turn it over.鈥
Chairman Steve Case said he was not looking to step into Levin鈥檚 place because he does not believe he has 鈥渨hat it takes to be CEO鈥. He added that there is 鈥渆normous talent within the company鈥 but would not be drawn on names.