From Yahoo News: LOS ANGELES - Paramount Pictures on Sunday agreed to buy independent film studio DreamWorks SKG Inc. for nearly $1 billion cash in a deal designed to help both companies reverse their troubled fortunes.

Dreamworks currently has the rights to produce the new live-action Transformers movie, which is also set to be distributed through Paramount. This sale/merger should not negatively affect the movie in relation to company rights being conflicted, however, Paramount is paying 775 million for Dreamworks, along with assuming 825 million in debt. How they are going to proceed with future projects, including the Transformers movie, and what type of cash flow / risk they will be willing to infuse in them is yet to be seen. No word on whether future projects could or would be delayed due to the merger was mentioned either.

The good news: Upon completion of the deal, expected to close early next year, Paramount would sign new employment agreements with Spielberg as a producer and director, and Geffen, who will become chairman of DreamWorks.

Spielberg and Geffen will be responsible for producing four to six live action films a year, Paramount said. The move will increase its overall annual production to between 14 and 16 titles annually.

DreamWorks will be given the same budget it has always enjoyed to make its films, and Spielberg will retain the same freedom he has had to partner with other studios to work on projects that interest him, Geffen said.

That is worrying because if paramount thinks that the movie is no good then it will be scrapped.

Please hope to "whoever", you mean "Scrapped"