Yup, Paramount Pictures is going to buy Dreamworks SKG in a deal worth around $1.5 billion (or a lot of more in simple terms). This will also include Dreamworks Animation and the entire Dreamworks catalogue, including films like Gladiator, Shrek, Chicken Run etc.
Many fans are concerned that the live action movie may be scrapped, but considering that Dreamworks and Paramount are both working on the movie (not many people seem to realise that Paramount are directly involved), there is little reason to canel one of the biggest movies of 2007.