Studio sources have declined to comment on yesterday's report thatNBC Universal is in talks to acquire live-action unit DreamWorks SKG.

According to the New York Post the studios were in the earlystages of talks but a deal was not imminent.

DreamWorks SKG issued a statement in which it said any commentsabout a deal attributed to its spokespeople were unauthorised and declined tocomment further. A spokesperson for NBC Universal refused to comment on therumours.

The live-action unit is the key element of the stable created bySteven Spielberg, David Geffen and Jeffrey Katzenberg in 1994, after DreamWorksAnimation went public last year.

The live-action unit has hada disappointing year so far. Last weekend Michael Bay's sci-fi epic TheIsland flopped in fourth place on$12.4m, while horror sequel The Ring Two finished on just over $76m earlier this year. The 2002 original grossed$129.1m.