Mr. Spielberg wanted to leave six months between the movie's theatrical release and its appearance on DVD, according to people familiar with the negotiations, in order to keep the movie in theaters for as long as possible. That's nearly twice as long as the regular gap and risked missing the sweet spot for video sales. After six months, the marketing for the movie may have faded from consumers' memories.
The dispute is unresolved. Mr. Spielberg's spokesman declined to comment, saying he's unaware of the discussions.
Mr. Meyer, 61, attempted to keep spirits up by making personal gestures such as attending each of his company's 19 employee screenings of "King Kong" in Los Angeles. He personally introduced the picture at every one.
GE, meanwhile, tried mending some fences. One such move, say people at the companies, was to preserve the annual bonus pool even though Universal fell short of its financial targets. GE executives also made a point of noting the free rein they gave Universal over "King Kong," despite the huge production costs.
About a month ago, Ms. Snider informed Mr. Meyer of her desire to explore other options, including leaving the company, say people with knowledge of their discussion. Shortly after, she met Messrs. Spielberg and Geffen to discuss the job running DreamWorks' live-action studio. That position carries less responsibility than her current job, but Ms. Snider -- who is in the thick of talks with Paramount -- is attracted by the creative autonomy and the opportunity to work with Mr. Spielberg, say people familiar with her thinking.
Ms. Snider's potential departure could have a ripple effect if her top deputy, vice chairman Marc Shmuger, is not named her successor and chooses instead to depart.