Disney (NYSE: DIS), a media conglomerate that does battle with the likes of Time Warner (NYSE: TWX), General Electric's (NYSE: GE) NBC Universal, CBS (NYSE: CBS), and News Corp. (NASDAQ: NWS), changed things up this time around when it came to second-quarter earnings. When I reported on the company's first-quarter earnings, I observed that the Mouse missed expectations. Thankfully, Disney pulled itself together and went beyond the call of Wall Street.

Disney said it earned 43 cents per share on an adjusted basis when it issued its Q2 release on Tuesday after the bell. As I noted in my earnings preview, analysts were looking for 40 cents per share. While that's a nice beat, let's be realistic: Disney is still having a rough time. That 43 cents per-share figure represented a drop of 26% compared to the year-ago period.

General Electric Company's (NYSE: GE) NBC Universal needs all the help it can get if it wants to remain part of the famous Dow component. After all, how many times have we heard in the last several years that the huge industrial conglomerate should get rid of the media asset? Well, maybe a little glitzy dose of DreamWorks will increase the perceived value of the movie/TV division in the eyes of a management in the midst of financial-crisis turmoil.

After wondering whether it would be Universal, The Walt Disney Company (NYSE: DIS), News Corp. (NYSE: NWS), or Time Warner, Inc. (NYSE: TWX), the new DreamWorks has decided to strike a distribution deal with Universal after it became a free agent following its split from Viacom (NYSE: VIA). This is according to The Hollywood Reporter. The transaction reportedly means that Universal will be releasing six films per year from DreamWorks starting sometime in '09.

Of course, we don't know all the details yet, but since DreamWorks is being funded by Indian media-investment entity Reliance Big Entertainment, Universal will probably only end up with a modest distribution fee. Still, any studio would have loved to have had bragging rights in terms of the famous director. It was never meant to be a fair competition, though, since the move to Universal was pretty much set in stone. Spielberg has had a special relationship with the company for a long time, and it was considered a given that DreamWorks would end up with a pact at the classic studio.

Viacom (NYSE: VIA) scored over the weekend at the domestic box office. Ever since I saw the trailer for the movie Eagle Eye back in the summer, I had a feeling this was going to turn out to be a hit. According to Boxofficemojo, the thriller took in $29 million since opening on Friday as of early estimates.

In fact, I can't understand why Eye wasn't placed in a summer slot. I suppose there are some legitimate reasons, such as the density of releases during the season, but this one begged to be competing in the busy time period. Steven Spielberg served as executive producer on this one, and Viacom's Paramount distributed it on behalf of the DreamWorks brand. Of course, Spielberg and DreamWorks will be departing from the Viacom fold, perhaps heading to General Electric's (NYSE: GE) Universal to set up a distribution deal.

Coming in second was Time Warner's (NYSE: TWX) Nights in Rodanthe. It was a distant second at an estimated $13.5 million. Got to be honest, I didn't hear of this movie before I started writing this piece. Sony's (NYSE: SNE) Lakeview Terrace was in third place with $7 million. Last week, Sony was on top with that picture.

Since General Electric (NYSE: GE) is reeling from the financial crisis that's currently gripping Wall Street, there's no doubt that a little Hollywood magic might be in order, something to take its corporate mind off reality for at least a little while.

Well, according to The Hollywood Reporter, that might happen. Steven Spielberg needs to move his DreamWorks company over to a new studio, and it looks like NBC Universal is at the front of the pack in the race to secure his business.

The pairing of Spielberg and Universal would be logically sound. He certainly had a better time over at that lot than he did at Viacom's (NYSE: VIA) Paramount. There is, however, one other studio that is in the running. The article seems to imply that Disney (NYSE: DIS) has a shot with Spielberg as well, although the way I read it, the Mouse is a distant second in the contest. Disney wouldn't be a good fit. As much as CEO Bob Iger would love to hold meetings with the most famous director in Hollywood (and the world, for that matter), a DreamWorks distribution deal just doesn't make sense since the company is really into getting a lot of bang for its capital buck.

MAJOR PAPERS:

• Steven Spielberg and his DreamWorks Animation SKG Inc (NYSE: DWA) partners are close to signing a deal with India's Reliance ADA Group for between $500M and $600M that would provide financing to the company as it prepares to leave Viacom Inc's (NYSE: VIA) Paramount Pictures this year, the Wall Street Journal reported. DreamWorks will seek to obtain an additional $500M in debt financing to make about six new films a year.
• The Wall Street Journal also reported that at an investor update yesterday, The Hershey Company (NYSE: HSY) CEO David West said the chocolate-bar maker would boost spending on marketing about 20% this year and next, and slightly increased the company's long-term annual sales targets. West offered little detail on how Hershey will address its reliance on the U.S. market for revenue.

OTHER PAPERS:

• The Economic Times reported that India's Maneesh Pharmaceuticals, a mid-sized company, bought a 51% stake in U.S.-based Synovics Pharmaceuticals Inc (OTC: SYVC). The terms of the deal were not disclosed.
• The Economic Times also reported that General Electric Company's (NYSE: GE) GE Money Financial Services, which was seeking a parter for its personal and home loan portfolios, may have called off the process after it was unable to get the right valuation.
• Bob Nardelli, the chairman and CEO of Chrysler LLC, sent a memo to employees warning them of worsening U.S. sales, the Detroit News reported. The e-mail did not indicate the auto maker would look to soon further cut production or lay off staff, a person familiar with the matter said.

Steven Spielberg and his high-powered friends at DreamWorks may have found financing to leave the Paramount division of Viacom (NYSE:VIA). According to The Wall Street Journal, Reliance ADA of India "would provide Mr. Spielberg and company with $500 million to $600 million in equity."

About a year ago, Viacom management said that DreamWorks was not a "material" part of Viacom. From a financial standpoint that may or may not be true. But, there are not many stars in the movie business with the credentials of Mr. Spielberg, who has made some of the most successful movies in the history of film.

The potential departure from Viacom of some of its top talent is telling. Large media companies are now so significantly challenged by competition, especially from the internet, that the idea of keeping big names at a price may no longer have much appeal.

In the age of user-created content and sites like YouTube, who needs movie stars to get eyeballs? The audience for video is moving away from movies which cost $200 million to make.

Douglas A. McIntyre is an editor at 247wallst.com.

Steven Spielberg wants to reboot the DreamWorks brand, according to this article. He's not happy being at Viacom's (NYSE: VIA) Paramount and not having full ownership of his films. What he wants to do now is see if he can summon $1 billion in financing to catalyze this new phase in his life.

Of course, the phrase "see if he can" is probably not the most accurate one to use when talking about Spielberg. When it comes to Hollywood, his word is scripture, and if he asks for financing, he'll have more takers than he can handle. After raising his billion bucks, Spielberg needs to decide which studio will be a perfect home for his new celluloid ambitions. Although the article states that there is a possibility he can land anywhere, to me, there's no ambiguity whatsoever.

Spielberg will end up at General Electric's (NYSE: GE) Universal (if I could be as sure about the price of oil as I am about Spielberg and Universal, I'd be a rich, rich man). He and his Amblin shingle have had a long relationship with Universal, and simply put, that's where he wants to be. It's funny to consider Disney (NYSE: DIS) and News Corp. (NYSE: NWS) as potential new homes for DreamWorks. Disney definitely wouldn't want him since the Mouse is being very conservative in terms of film making, and although News Corp. would love to overpay for him (I think News Corp. enjoys overpaying for things at times), I just don't see Spielberg going to Fox.

At a mere $276 million, celebrity talk-show host and entertainment billionaire Oprah Winfrey could afford to buy Bear Stearns (NYSE: BSC), which closed Tuesday at $5.91 per share and keeps on climbing to over $6.50 a share in morning trading. The story alone and the associated publicity would be worth at least that. Furthermore, she could at least make an offer and demand a meeting with the Federal Reserve Board to discuss the issue.

If her offer was rejected, she would still be able to generate millions of dollars of publicity and perhaps she might want to acquire the asset, in particular if the Fed is going to protect the acquirer from potential losses. She could really become an international mogul, the likes of which has not been seen. We all know that Oprah wants to do good. She is so giving, this could be the ultimate.

I could just see the headlines: Oprah Winfrey takes on JP Morgan Chase (NYSE: JPM) and the Federal Reserve to rescue John Q. Public.

According to The Wall Street Journal (subscription required), Viacom (NYSE: VIA) really wants to keep Steven Spielberg in its studio roster.

The media company is due to make some righteous bucks from Spielberg and his new Indiana Jones flick, which is set to hit theaters in a couple months. CEO Philippe Dauman wants to correct any missteps he made in his relationship with the extremely famous and powerful director after perhaps not singling out his importance as much as he should have in comments made at a conference last year.

I'm a big fan of Steven Spielberg; the man definitely knows how to make money. But, I do have to confess that, when it comes to chasing big, expensive stars, I think CEOs of studios must consider two things: 1) success in the movie industry is so random that every project represents extreme risk, no matter who is attached; 2) it is the deal that matters most; or, put another way, it is the return on invested capital that must be chased, not the celebrity of a certain individual. Say what you want about Disney (NYSE: DIS) and its movie-making ways, but keep in mind that the company does focus on ROIC, to its credit.

Director and producer Steven Spielberg resigned his non-paying artistic director advisory role for the 2008 Summer Olympics Games in Beijing because he has become disenchanted with China's lack of effort to use its influence in Sudan to end violence in the Darfur region.

The Chinese want to be players on the world stage without accepting the responsibility that goes along with it, and that was not acceptable to Spielberg. There has been growing pressure around the world on the Chinese, who purchase most of Sudan's oil and sell them weapons, to exert political and economic pressure on the government of Sudan. While Spielberg is only one more voice in a long list condemning Chinese actions and the lack there of, he is a very prominent voice.

Governments, Olympic athletes, religious leaders and shareholders have been complaining that China was not doing enough, if anything to curb the violence. This was an issue with Berkshire Hathaway (NYSE: BRK.A) shareholders at their 2007 annual meeting. While stating that he sold off BRK's interest in PetroChina (NYSE: PTR) based on valuation, Warren Buffett was completely divested in a matter of months and the stock has fallen almost 40% from its highs.

Steven Spielberg is, let's face it, one of the most creative guys on the planet, and he's been responsible for some of my most treasured memories at the local multiplex -- who didn't love watching Indiana Jones ride off into the sunset at the conclusion of Indiana Jones and the Last Crusade or viewing couch-jumping Tom Cruise race through a futuristic setting to prove his innocence in Minority Report? The guy is a genius; he also loves videogames. And Electronic Arts (NASDAQ: ERTS) has teamed up with him to develop entertainment software in a bid to differentiate its lineup from the competitive likes of Activision (NASDAQ: ATVI), THQ (NASDAQ: THQI) and Take-Two (NASDAQ: TTWO).

I just read the press release announcing the game he helped create for the Nintendo Wii. It's due out this summer, and it's called BOOM BLOX. I have to be honest and say that I'm not sure exactly what to expect. It has something to do with puzzle combinations, building block structures up and then knocking them down, crazy characters like monkeys who throw baseballs around for one reason or another, etc. Oh, and there are chickens and haunted places, and there are hundreds of levels. Sounds confusing?

I'm confused, but I'm sure if I do a little Googling, I can figure out what's up with this title. The Nintendo Wii is pretty hot right now, as if I had to tell you, and I think a game with the Spielberg brand may sell well for EA. Spielberg is due to deliver two more games for EA. There's no guarantee they'll move copies just because he's involved in their development, but EA having access to his intellectual artistry certainly can't hurt. The publisher will definitely have to do some savvy marketing to ensure that not-with-it folks like myself know exactly what to expect from this game -- the press release claims I'll be addicted, and who's to say I won't be?

Disclosure: Steven Mallas owns Activision and Take-Two, and is looking at a possible buy of Nintendo after this post. Believe it or not, he actually owns the E.T. game for the Atari 2600 (how old-school is that).

With Shrek I, II, III -- and around the corner, IV -- it would be nearly impossible NOT to have heard of this animated film franchise. It is one reason why DreamWorks Animation SKG (NYSE: DWA) is soaring.

This animation film company was spun off from DreamWorks Pictures, the brainchild of Hollywood power trio, Steven Spielberg, Jeffrey Katzenberg, and David Geffen. The animation studio, which went public is 2004, creates family entertainment made through CGI (computer generated animation), and is responsible not just for the Shrek franchise, but for many hit films like Chicken Run, Madagascar, Shark Tale, and Over the Hedge, among others. It is now dedicated to releasing two CGI animated films a year, which is an impressive number given the time and money it takes to create this type of movie.