DreamWorks pulls out of studio deal
DreamWorks SKG, the Hollywood film studio co-founded in 1994 by Steven Spielberg, Jeffrey Katzenberg, and David Geffen, pulled out of a deal to build a new $250 million studio on July 1, 1999 because it could not reach a financing agreement. DreamWorks said it was unable to reach a financing deal that "makes good business sense." The closely held company also cited rising construction costs and tougher financing terms due to the rebound in the Los Angeles real estate market. Last year DreamWorks signed a deal with developer Playa Capital Co.