Paramount Pictures, a unit of Viacom Inc., announced today that it has closed on its acquisition of DreamWorks SKG for $1.6 billion in cash and assumption of debt. The announcement was made today by Paramount Chairman & CEO Brad Grey. The company noted that it is well along in its process to sell the DreamWorks live action film library.

Under the agreement, Steven Spielberg and David Geffen of DreamWorks will remain in their respective roles as producer/director and Chairman. In addition, the company has entered into an exclusive 7-year agreement to distribute films from DreamWorks Animation, led by Chairman Jeffrey Katzenberg.