Variety reports that DreamWorks Pictures has acquired all domestic and remake rights to Slamdance Fest entry Paranormal Activity, Oren Peli's micro-budget hand-held haunted house pic.

The film likely will be released in the U.S. direct to DVD, but IM Global picked up all international rights; the movie will be included on its upcoming Berlin slate.

An Israeli émigré, Peli arrived in the United States at age 19 and pursued a career as a videogame programmer.

Peli shot the film over one week with a high-def camera in his own house with two unknown actors, Katie Featherstone and Micah Sloat, who manned the camera much of the time.

Jason Blum will produce, and Steven Schneider will executive produce the new film. DreamWorks' Ashley Brooks will oversee the film and its remake for president of production Adam Goodman.