The new unit formed by Jeffrey Katzenberg, Steven Spielberg and David Geffen tosses Hollywood into a tizz

The White House was crammed with glamorati three weeks ago for a state dinner honoring Boris Yeltsin. Few noticed that among the visitors from Hollywood were three men -- director Steven Spielberg, music mogul David Geffen and ousted Disney movie chief Jeffrey Katzenberg -- who between courses were giddily planning to merge their talent and clout in a new entertainment company. "We're in tuxedos talking about a brand new studio," Spielberg recalls, "and just across from us there's Yeltsin and Bill Clinton talking about disarming the world of nuclear weapons."

You'd think that the plans of three media mavens wouldn't amount...

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