(FORTUNE Magazine) – On the heels of Shrek 2's success ($425 million in ticket sales), DreamWorks Studios is gearing up for the $650 million IPO of its animation division. But is it the end of the celebrated partnership of Steven Spielberg, Jeffrey Katzenberg, and David Geffen, who co-founded DreamWorks in 1994? It certainly looks that way. Katzenberg and Geffen will control the new company. They'll receive stock that gives them 15 votes a share instead of one vote, and Katzenberg will be CEO of the spinoff. But he'll only spend up to 10% of his time back at DreamWorks Studios. Geffen, on the other hand, will oversee the studios. He'll sit on the new company's board (chaired by ex-PepsiCo CEO Roger Enrico), but he'll have no management role. Where's Spielberg in all this? According to the IPO prospectus, he may do some consulting for the animation spinoff. The planned IPO is also a reminder that DreamWorks hasn't lived up to its original promise. It was conceived as a diversified media company with television, film, music, and videogame divisions. But only computer-generated movies like Shrek have really paid off. (DreamWorks sold its record company to Universal Music Group last year.) Now it looks as if the founders and their investors--most notably billionaire Paul Allen--are trying to cash out while Shrek is hot and Shark Tale, their next digital release (due out in October), is getting good buzz. They are taking no chances; Shrek 3 just went into preproduction. --Devin Leonard