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M$, Universal and Fox see light in Halo

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Microsoft and the Creative Artists Agency have reached a tentative agreement with Universal and Fox for the film rights to the Xbox video game "Halo."

The deal was reportedly a major step down for Microsoft from its initial demands for a $10 million upfront fee and 15 percent of the studio`s first-dollar box-office gross receipts, the New York Times reported Friday. The company had also sought a large amount of creative control, insisting on approval over the cast and director and a budget reaching at least $75 million, not including the fees for the actors and director.

The deal with Universal and Fox would award Microsoft no more than $5 million for the film rights and only 10 percent of the first-dollar box-office gross receipts, the Times said. Universal would oversee production and get domestic distribution rights, while Fox would get the foreign rights and have a say in production.

Negotiations were expected to continue Friday.

United Press International

In related news: Hollywood balks at Microsoft's 'Halo' pitch.

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