HOLLYWOOD

KATZENBERG'S PARTING MAY BE PROFITABLE SORROW

Next month the much anticipated lawsuit by DreamWorks SKG partner JEFFREY KATZENBERG against his former employer, Walt Disney Co., goes to court. Katzenberg says Disney owes him 2% of all profits generated by his work. Disney denies this, and a loss will be costly for the studio. Early estimates from the plaintiff's camp put that amount around $250 million. Now, following court-ordered discovery detailing Disney's finances and profits, projections run between $300 million and $500 million--much more than the $125 million payout to ousted executive Mike Ovitz.

--By Jeffrey Ressner/Los Angeles

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