Tycoon Invests In Movie Studio

Microsoft Corp. co-founder Paul Allen is investing $500 million in the new studio created by Steven Spielberg, Jeffrey Katzenberg and David Geffen.

Allen will be the biggest outside investor in DreamWorks SKG, the company said Sunday.

Allen’s stake in the Universal City-based DreamWorks - founded last October by the three entertainment executives - will total about 18.5 percent.

Geffen said the three founders will retain two-thirds of the company, which has a total value of $2.7 billion.

DreamWorks will produce films, records and interactive entertainment.