Though DreamWorks has split from Paramount to become its own independent company, DreamWorks Animation will be staying with its original distribution arm through 2012. According to Variety, DreamWorks Animation has absolutely no business relationship with DreamWorks because it was spun into a public company to help investor Paul Allen liquidate his early investments, and it will be staying in the Paramount Pictures stable.

DreamWorks animation department has not been connected to its live-action counterpart for over two years. DreamWorks Animation CEO Jeffrey Katzenberg has headed the animation studio since it started four years ago. According to itali|Variety, he has had only positive public words for Paramount and there have been few conflicts between the company and its parent, Paramount.

Wedbush Morgan analyst Michael Pachter stated, "Whether it's distribution, marketing, or home entertainment, Paramount has been treating DreamWorks Animation like it's incredibly important. It's widely perceived as a good relationship."

Paramount has gotten into the animation department itself, scheduling its Gore Verbinski project Rango, which stars the voice of Johnny Depp, for March of 2011. It is rumored that DreamWorks animation may release a sequel to Kung Fu Panda during that same time frame, which could be a conflict of interest.

B. Alan Orange