Such modesty! To a point, anyway: If and/or when his Reliance Big Entertainment honeymoon ever tapers off, Spielberg and DreamWorks president Stacey Snider really won't have the Geffen touch to help woo another international conglomerate into bed. But by then Spielberg, 62, will probably be ready to scale back anyway, and survival will be less about braintrust than brand (and the library it manages to develop with its new distribution partners at Universal). He shouldn't even be there now, if one of his more illuminating disclosures today is to be believed:

In describing Mr. Geffen’s role at DreamWorks, Mr. Spielberg likened it to a family relationship. “Jeffrey and I were like the kids,” he said, while Mr. Geffen built the house and saw that the bills were paid. [...]

By his own recollection, Mr. Spielberg was initially reluctant to join in creating the original DreamWorks studio, which was conceived by Mr. Katzenberg shortly after he was fired as chairman of the Walt Disney Company’s studio operation in 1994. But Mr. Katzenberg begged for a meeting, and asked to bring a friend. The friend was Mr. Geffen, who not only did all the talking, but insisted to Mr. Spielberg: “I am representing your best interests.”

That assurance was to become the theme of Mr. Geffen’s dealings with Mr. Spielberg, who describes Mr. Geffen’s efforts for him over the years as a kind of “altruism.”

Aww! That shouldn't imply Spielberg was in a hurry to race out the door at Paramount, though, where Geffen reportedly had a short stay in mind even before he clashed with Brad Grey in 2006 over credit for Dreamgirls; "I do not like change," the director told the NY Times. And even if we have Tom Freston's firing and other, seemingly circumstantial evidence to vouch for that philosophy, everyone knows the bottom line: The sex just isn't the same off the Paramount lot. Wait and see — he'll be back.

• David Geffen Makes a Sudden Exit [NYT]

After all, it's hard enough facing a happy Brian Grazer, whose Imagine Entertainment is also headquartered on the Uni lot, where it cranks its own fistful of prestige titles every year. Imagine evil Grazer, suspiciously adapting a Jokeresque grin and pitting his own interns versus DreamWorks assistants in a climactic time-bomb face-off after Snider usurps yet another plum release date for Untitled Shia LaBeouf Sequel. It could happen, reports The New York Times:

[Uni president Ron] Meyer would not discuss anything related to a DreamWorks deal, except to say: “We would be very pleased to be back in business together. We don’t anticipate a real impact on our current or future slate from distributing their films.” [...]

Officials at NBC Universal have said that they realize a deal with DreamWorks could upset Universal’s equilibrium and that they will take that into consideration before entering into any kind of formal partnership. But ultimately, the company wants the deal to happen; the money that the company can make by distributing DreamWorks movies — which are hits more often than not — far outweighs any ruffled feathers.

We certainly hope so for Grazer's sake. It's hard times, after all, and you'd be surprised: All that Hawaiian appliance-and-furniture replacement adds up before you know it.

• DreamWorks, Universal ink deal [Variety]

• A DreamWorks Deal Could Rock Universal’s Boat [NYT]

The rest of the picture is still taking shape, but after the jump we have a few educated guesses as to where things might land — and it looks curiously like Bollywood.

Led by Anil Ambani, by Variety's count the world's sixth richest man (and the husband of a Bollywood actress), Reliance is apparently taking over Hollywood one A-list player at a time. Its film funding arm, Reliance Big Entertainment, made headlines at Cannes last month when it announced development deals with the likes of George Clooney, Brad Pitt, Tom Hanks and others, splitting with studios the costs of new productions costing up to $1 billion. Reliance's latest venture is decidedly more ambitious, expanding its vast media footprint to claim what will be roughly half of the new DreamWorks: Six or so films a year through a studio to be determined (probably Spielberg's old stomping grounds at Universal, where he still keeps an office).

The deal also continues Asia's incursion into Hollywood, perhaps epitomized by Sony's $4.8 billion takeover (with Comcast) of MGM in 2005. But India has been even more active in the last year, with TV producer UTV Software buying into Fox's The Happening and Lionsgate entering a development deal with Mumbai-based shingle Eros International. The Reliance/DreamWorks pact is the biggest by far, but as noted by WSJ, the Snider connection gives Reliance stable executive footing for its grand Hollywood experiment.

The paper also adds, however, that DreamWorks would be dealing with an Indian conglom with its own internal drama: Anil Ambani is embroiled in a feud with his older brother Mukesh over a multi-billion dollar acquisition in South Africa. The trouble would only touch DreamWorks if the communications arm were ever sold; the brothers have reportedly been fighting over controlling interest in that case.

Spielberg will obviously cross that bridge when he comes to it, as will he face inevitable concerns about investor influence over his and Snider's slate. To wit, are the Clooney/Hanks/Pitt et. al. projects earmarked for the 'Works? How will Reliance play ball with Universal, Fox or another studio enlisted to distribute DreamWorks' films? Will press inquiries forevermore be rerouted to a call center in Bangalore? So many questions!

• Spielberg, India Firm Near Deal to Ally With DreamWorks [WSJ]

It depends on what Steven Spielberg and David Geffen want. Most important is autonomy, which they won't get without once again going the independent route: self-funding their own projects and paying out a distribution fee to a studio with the infrastructure to put their product in theaters. If Marvel can do it, God knows DreamWorks can, but Spielberg wants more — like full-blown "studio" more. That's why we kind of like the Universal prospect floated today by Goldstein:

Pros: No studio has the same emotional tug as Spielberg's ancestral home. Studio boss Ron Meyer would love to have DreamWorks back in the fold, while Spielberg and Snider (a former chairman at the studio) have an easy familiarity with Uni's marketing and distribution machinery.

Cons: After the dysfunction of Paramount, would DreamWorks want to be anywhere near the tightly controlled GE corporate culture that drove away Snider in the first place? GE remains the antithesis of DreamWorks' bureaucracy-free model.

Nevertheless, with everybody else overextended (Warner Bros., Sony) or content with their classier, "independent" outlets (Fox with Fox Searchlight; Disney with Miramax), Universal is the only studio that has would have the 'Works on its own terms. What Universal needs is development, and DreamWorks has that in spades. The bureaucracy would pare down pretty fast if (or rather when) DreamWorks is producing six films a year including one from Spielberg — while Snider is clearing the brush on his behalf. Goldstein even suggests that Spielberg might buy Universal, which, at a valuation of up to $25 billion, is ludicrous (even without NBC involved). But if this deal doesn't happen, it won't be for its principals' lack of trying. And hey, if not, then sure: Hellooooo, MGM!

• DreamWorks is ready to bolt from Paramount [LAT]

"It's proved that when you offer people great stories that also deliver state-of-the-art effects and stunts, they want to go out and experience it together. It becomes an event," said DreamWorks CEO/co-chair Stacey Snider, whose studio and Paramount turned out "Transformers."

Of course, it doesn't hurt when those great stories, state-of-the-art effects, and amazing stunts enhance a communal experience constructed around hugely successful animated ogre, spandex-clad superhero, or sexually ambiguous pirate franchises, but whatever. This is not a time for cynicism, it's one for celebration: As we speak, famously generous Paramount emperor Brad Grey is finalizing his plans to end August with a Free Bag of Money Social on the Melrose lot, in which he'll personally reward each employee for their contributions to Shrek the Third and Transformers' incredible run of success.

[Chart via Digital Variety]

• Hollywood hits new highs [Variety]

Snider told associates she was furious that Grey had not given her a heads-up about the news release and had lumped her in with three production chiefs who lacked her seniority and status. Although she contractually reported to Grey, Snider saw herself as his equal and considered her true boss to be Spielberg, according to people close to her.

After all, she was the only one at the studio other than Grey who could "greenlight" movies. Along with Spielberg and Geffen, Snider can approve, without Grey's blessing, any film costing up to $85 million, and those up to $100 million if Spielberg is director. DreamWorks is expected to make six to eight movies a year — about as many as Paramount, before counting its two smaller labels.

Snider called Grey that evening to express her anger, said a person with knowledge of the conversation. The discussion became acrimonious and Grey hung up on Snider, the person said. Snider immediately contacted Geffen, who phoned Grey on her behalf.

Grey refused to discuss the matter, but sources close to him say the three have made up.

"I feel zero tension with my partners at DreamWorks," Grey said. "We are one company and their success is our success."

Grey's challenge is convincing his new colleagues. "They have to put some of their ego stuff aside and realize they have something bigger and greater than the sum of the parts," suggested Lilli Friedland, a Century City psychologist who works closely with media executives.

We're glad the Times approached a corporate psychologist to offer some perspective on the ongoing dysfunction on the Melrose lot. Perhaps the parties involved will be inspired to take more active steps to put their bickering behind them in the pursuit of the greater studio good, with Snider and Grey meeting in his office to exchange air-clearing blows with foam grievance-bats, whaling harmlessly, but cathartically, away at one another, primal-screaming "I am resentful that you might one day take my job!" and "You don't respect my moviemaking autonomy! Also, it's taking way too long for me to get your job!" as they try and mend a strained working relationship.

• A battle of wills behind scenes at Paramount [LAT]

"I have the utmost faith in the integrity of Brad Grey," Redstone said, acknowledging that in making such a blanket endorsement, "I'm going out on a limb here. We have investigated this to the fullest. But can anybody be certain of anything but life and death?"

If Redstone sounds like he's hedging his bets a little with his philosophical qualifier on life and death, it's only because the seemingly immortal executive is rumored to stay vital by draining the blood of his studio executives and a little controversy keeps his supply pumping as fast as he can consume it. Once Grey's tapped out, he'll discard the desiccated husk and move on to the next meal, indictiments or no indictments.

• Viacom Backs Grey as Probe Unfolds [LAT]
• Previously: Today In Brad Grey: More Wiretapping Fun, Crazy Succession Rumors [Defamer]

Universal Pictures is on the verge of granting former studio chief Stacey Snider an early release from her contract, enabling her to start work as chief executive of the DreamWorks unit of Paramount Pictures.

Paramount confirmed Wednesday that Snider would start her new job April 10.

Snider is expected to be released from her Universal contract by today, according to executives involved in the matter.

So it seems that Paramount emperor Brad Grey took two-of-three rounds in his arm-wrestling match with Universal's Ron Meyer (Grey is notorious for illegally bending his wrist and distracting his opponents underneath the table with a wandering, stockinged foot) to spring Snider from her contract, anxious to get her started at DreamWorks and begin the inevitable speculation that she'll soon be taking his job.

• Universal May Let Exec Exit [LAT]
• Previously: Sniderwatch Ends As Stacey Chooses Steven and Brad Over Ron [Defamer]
• Today In Brad Grey: More Wiretapping Fun, Crazy Succession Rumors [Defamer]

Ron Meyer called an all employee meeting on the lot today at 9:30 AM. He is going to announce who is replacing Stacey Snider. Hasn't announced yet...minutes away.

But even before we could quickly type out a joke about white smoke rising from the Vatican Thrill-Ride at the Universal Studios theme park, we've been told that it's been announced that as expected, Uni vice-chairman Marc Shmuger and Focus Features co-president David Linde will co-chair the studio. No details yet, but as we must say in these situations: Developing...

UPDATE: Here's the internal e-mail from Ron Meyer announcing that Shmuger is promoted to Chairman and Linde to Co-Chairman:

I'm pleased to announce that we have named Marc Shmuger, Chairman, and David Linde, Co-Chairman, Universal Pictures.

Effective immediately, Marc and David will be responsible for overseeing all domestic and international business units of Universal Pictures, Focus Features/Rogue Pictures and Universal Studios Home Entertainment, including production, distribution, marketing, legal and business affairs, acquisitions, consumer products, corporate partnerships, strategic planning and finance. Marc has played a critical role in the success of Universal Pictures serving as Vice Chairman, Universal Pictures, since 2000, and David has successfully served as Co-President of the award-winning specialized film division , Focus Features, and President of the newly launched genre label, Rogue Pictures.

To have them both come from our deep bench of talent gives us a unique competitive advantage and provides continuity for the business and the entire team. I'm confident that their experience, leadership and commitment will be instrumental in our continued success.

Please join me in congratulating them both.

Thanks,

Ron

• Previously: Sniderwatch Ends As Stacey Chooses Steven and Brad Over Ron [Defamer]

From: xxx 02/27/2006 09:36 AM To: Paramount_MotionPicture_All Subject: A MESSAGE FROM BRAD GREY

Good Morning!

In case you missed the coverage this morning, I wanted to make sure you saw the attached release announcing that Stacey Snider has joined our DreamWorks label as Co-Chairman and CEO. She will be working with Steven Spielberg, David Geffen, and our entire DreamWorks team to create 4-6 movies a year for the Paramount slate. She is an incredibly talented executive and will be a fantastic addition to our family.

I hope you'll join me, Gail, Rob and the entire senior team in giving Stacey a warm welcome.

The release is below for you to read....

Brad

We'll spare you the press release, but Paramount employees must be pretty excited to finally receive a message from their fearless leader that doesn't make ominous mention of the "challenges" who will be looking for new work that seems to accompany every exuberant announcement about changes at the studio. And if it seems like he's forgotten to make his obligatory Berman defense, that's just because he's going to personally call everyone on the Melrose lot and politely ask that they stop gossiping about the status of her job or risk the immediate removal of their department's Sparkletts cooler.

• Previously: Sniderwatch Ends As Stacey Chooses Steven and Brad Over Ron [Defamer]

"I had at times in my career hoped one day I could work with Steven," said Snider.

Now, she will sit alongside him at his production headquarters, ironically still based on the Universal back lot. Snider will run the day-to-day operations with Spielberg and DreamWorks co-founder David Geffen, with whom she shares the co-chair title. Snider's start date is unclear, since Universal has not formally released her yet from her current contract, which expires in December.

In a statement to The Times, Spielberg said: "Stacey has a unique combination in a film executive in that she recognizes a need to make commercial movies, but also aspires to make art. She recognized that balance is good."

We're still awaiting our copy of Brad Grey's interoffice monkeygram announcing the coup to his employees, but perhaps he was a little preoccupied crafting yet another statement defending embattled Paramount lieutenant Gail Berman's job security in the wake of this seemingly threatening hire:

"Gail, as I've said very recently, has all my confidence. She's the president of Paramount Pictures. She has a very big job in putting together the slate of Paramount Pictures."

Steven got his gal, Brad's keeping his, and, best of all, there seems to be no reason to lay anyone off. Everybody's happy at the New New Paramount!

• Spielberg's Siren Call Lures Snider to DreamWorks [LAT]
• Snider hits the switch [Variety]

Paramount chief Brad Grey, to whom Snider would report, also declined to discuss the possibility of hiring Snider. However, he was eager to deny rumors that Snider would be hired to replace Paramount President Gail Berman, a veteran television executive who has had a rocky transition to her new movie job.

"Gail has been a winner her entire career," Grey said. "She has my full support and confidence."

"However," continued Grey with unexpected candor after fastidiously adjusting a pen on his desk so that it was perfectly parallel with the edge of his desk blotter, "My tenure at Paramount has been a total fucking disaster, so I'm seriously considering giving Stacey my job and letting her sort out this mess. Who needs the hassle? I've always wanted to retire young to Wyoming, you know, buy a big old spread, mismanage a few hundred head of cattle, lay off some ranch hands...and I'm extremely confident I'd look pretty damn good in a cowboy hat. I've always thought that."

• Snider Eyes Studio Switch [LAT]
• Previously: Inside The Budgets: Brokeback Vs. Kong [Defamer]

"Stacey and her team believe BROKEBACK MOUNTAIN is their winner this year," claims a well-placed insider. "The movie has been spoiled, spoiled and spoiled again, with endless promotion and support. MUNICH, on the other hand, has been horribly neglected. Steven has been thrown in the backseat. It has been painful." [...]

She says she loves all of her children equally, but Stacey [Snider] and her team have given every priority to BROKEBACK," charges the MUNICH source. "Gay romance is easier to sell to the academy than a complex study of an Israeli assassin."

If the sources are accurate, Snider might soon find herself bound, gagged, and thrown in the back seat of a black Mercedes, her bonds loosened only after arriving at a secret location in the Pacific Palisades. There, straining to make out the faces of her Jewish Mafia intimidators through the harsh flashlight beams aimed at her eyes, she'll be made to understand that no matter how many times the Velvet Mob competition threatens to redecorate her house completely in Ikea furnishings, a far more grisly fate awaits if she doesn't start campaigning a little harder for Munich.

• STUDIO EXECS PREFER 'BROKEBACK' OVER 'MUNICH' [Drudge Report via The Gilded Moose]

THR: How do you determine the budget of a movie, whether it's "King Kong," at $207 million, or "Brokeback Mountain," at $14 million?

Snider: It starts from a completely subjective gut check: What do we think this movie can do? Then you go to the research to see if that first gut reaction is supported by the historicals. Then you ask if there's a reason for this movie to exceed the historicals or is there something about the project that would lead it to underperform? We talk with each other, so it's not just one's person's enthusiasm.

Due to space considerations, we won't blockquote Snider's entire response, which included a surprisingly candid admission that "one person's enthusiasm" lead to Brokeback being originally envisioned as a Kong-style, CGI-filled blockbuster. But after early test footage revealed that much of America was not ready for a $200 million gay love story about a 50-foot cowboy and his human companion (their first sexual coupling, while tastefully shot, was ultimately too terrifying) laying waste to an intolerant ranching community, a scaled-back, Oscar-friendly version was rushed into production.

• Dialogue: Universal's Snider trusts her reactions [THR]