It seems DreamWorks search for a distribution home continues. According to The Hollywood Reporter, Universal has suddenly pulled out of talks with DreamWorks to distribute their films.

DreamWorks heads Steven Spielberg and Stacy Snider are now in discussions with Walt Disney Studios for a distribution deal. It was said that Fox was a potential studio for DreamWorks, but it appears that Disney is the only studio in talks with DreamWorks as of now.

Universal issued the following statement on the talks breaking down: "Universal Pictures has ended discussions with DreamWorks for a distribution agreement. Over the past several weeks DreamWorks has demanded material changes to previously agreed upon terms. It is clear that DreamWorks' needs and Universal's business interests are no longer in alignment. We wish them luck in their pursuit of funding and distribution of their future endeavors."

It was said that Disney might be in a position to release as many as eight films per year from DreamWorks.