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Dreamworks Business Model Fails - Studio Purchased By Paramount for $1 billion

Dreamworks SKG -- the studio that produced the great movie "American Beauty" -- was purchased by Viacom / Paramount for just north of $1 billion.

"When Steven, Jeffrey and I started the company and had to put an entire infrastructure together from day one, we had hoped to be able to make enough films to rationalize the cost of being our own distributor," David Geffen -- the "G" in SKG said Sunday."

I wonder if this would not have been the case, had Dreamworks concentrated on producing very low budget movies of up to $1 milllion, each.