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Summary Box: Paramount to launch animation unit

THE DEVELOPMENT: Paramount Pictures, a division of Viacom Inc., is creating a division to make its own big-budget animated movies.
/ Source: The Associated Press

THE DEVELOPMENT: Paramount Pictures, a division of Viacom Inc., is creating a division to make its own big-budget animated movies.

THE TIMING: It follows the blockbuster success of "Rango," which has grossed more than $240 million worldwide since its release in March.

THE TENSIONS: It will put a strain on its longtime agreement to distribute movies from DreamWorks Animation SKG Inc., the maker of "Shrek" and "Kung Fu Panda." Paramount wants to produce more of its own material because it is more lucrative than simply distributing other studio's pictures for a fee.