What's been rumored in Hollywood for months was finally made official Tuesday: MCA and DreamWorks, the studio created by David Geffen, Jeffrey Katzenberg and Steven Spielberg, have formed a long-term strategic alliance. MCA will distribute all theatrical and video products and will have rights to use DreamWorks properties in MCA's theme parks. The deal also calls for the creation of two new record labels, DreamWorks and SKG. All music products will be distributed nationally through Geffen Records, an MCA company, and internationally through MCA Music Entertainment International.
Messrs. Geffen and Spielberg have been unabashed in their admiration and loyalty to MCA President Sidney Sheinberg and Chairman Lew Wasserman, but the certainty of the deal was questioned when Mike Ovitz was being considered for the top job at MCA. Mr. Ovitz, chairman of Creative Artists Agency, opted not to take the job last week.