Steven Spielberg, David Geffen, and Jeffrey Katzenber, the three doyens of entertainment industry came together in early 1994 to start DreamWorks. Though DreamWorks has delivered many high quality movies, it is facing rough weather due to various reasons. The article examines the performances of the studio and the liquidity crunch it is facing.

Even as Shrek II waits for accolades in the Cannes Film Festival this year, DreamWorks problems seem far from over. Despite close to $2 bn earnings in 2002, his company was a long way from making profits. DreamWorks SKG (DreamWorks) had delivered many high quality movies since it had been founded nine years ago and had earned three best picture Oscars in the last four years. But it is facing a rough weather due to various reasons. Steven Spielberg (Spielberg), Jeffrey Katzenberg (Katzenberg) and David Geffen (Geffen) are worried men. DreamWorks is almost ten years old and is far away from making a profit. It has already postponed returning the initial investment to the investors. While the partners put a value of more than $3 bn to the company, Wall Street was quoting one-third of it. Though performing well, the movie business suffered. It had not been able to build a convincing franchise and depended heavily on the brand equity of Spielberg. The music division was an under achiever. The television business had just one hit since it was launched six years ago and the sales of DVDs were stagnant. Though Spielberg, busy finding his next script and Geffen, preoccupied with his philanthropic activities, are aware that something has to be done to achieve the dream they all had when they came together.

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