Things just got a little dicier for Paramount. After a disappointing first half of the year, the studio just lost the source of its only hit movie, "Madagascar 3."
DreamWorks Animation is moving from Paramount to Twentieth Century Fox in a new five-year distribution deal, according to Deadline.
This after Deadline said DreamWorks Animation CEO Jeffrey Katzenberg promised Wall Street analysts the studio would have a new distribution deal by Labor Day.
As of August 12, DreamWorks narrowed down its distribution choices to Fox and Sony.
DreamWorks is home to numerous popular animated franchises including "Madagascar," "Shrek," "Kung Fu Panda," and "How To Train Your Dragon."
Fox is already home to the biggest worldwide animated franchise, "Ice Age," the latest of which is currently crawling towards a $1 billion gross. Their Blue Sky studios is also home to "Rio" and the upcoming "Epic."
This is a big win for Fox, as they now own the second and third most profitable animation studios (DreamWorks and Blue Sky) behind only Disney/Pixar. Upcoming DreamWorks projects include November's "Rise of the Guardians" as well as "How To Train Your Dragon 2" and "Kung Fu Panda 3."
Here's a look at how each major animation studio has fared in 2012:
The Lorax (Universal) — $335 million
Brave* (Pixar) — $408 million
Madagascar 3: Europe's Most Wanted* (DreamWorks) — $565 million
Ice Age: Continental Drift* (Fox) — $796 million
*Still in theaters. Gross as of 8/21.
