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Paramount Wants to Buy DreamWorks

Viacom?s Paramount will buy DreamWorks for $1.6 billion including the assumption of about $400 million in debt, according to published reports. Viacom will reportedly pay $600 million to $700 million with private-equity investors paying $800 million to $1 billion. An executive at Paramount told reporters that the company has not yet decided which private-equity partners it would turn to for financing, although a number of firms have expressed interest.

Paramount would get DreamWorks` library of about 60 films, including "Saving Private Ryan" and "Gladiator" and the right to distribute domestically and internationally movies made by DreamWorks Animation, including "Shrek" and "Chicken Run".

DreamWorks asked NBC-Universal to match Viacom`s offer, but when it failed to do so, ended negotiations with the company, executives said. NBC was offering around $700 million, plus the assumption of the studio`s debt, executives close to the negotiations said.