DreamWorks SKG announced late Monday that it has pulled the plug on its merger discussions with NBC Universal’s film unit just as the window for the two companies to be able to hold exclusive negotiations is set to close.

The two companies had been in discussions since July about a possible combination, but reports indicate the talks stalled over DreamWorks’ $1 billion price tag. A report in Tuesday’s Wall Street Journal said another factor that could have had an impact on the talks was director Steven Spielberg’s desire to retain the kind of independence he enjoys at DreamWorks.

Universal had hoped to snag DreamWorks to gain access to its film library, as well as bolster DreamWorks’ film production. Universal also hoped the deal would bring it closer to Mr. Spielberg, who remains a big draw for many audiences.