Financial Times reports that Paramount Studios is going to use its escape clause to get out while it still can.

Meanwhile, since Warner went Blu, there have been many rumours that Universal Studios will also use its escape clause to jump in.

It seems that 2008 will declare Blu-ray the winner of the high definition disk format wars, and we can finally rest easy knowing our expensive Blu-ray players and PlayStation 3’s have a future.

Update
Here is the Financial Times article which says,

Paramount, which is owned by Viacom, is understood to have a clause in its contract with the HD DVD camp that would allow it to switch sides in the event of Warner Bros backing Blu-ray

But it isn’t known if Dreamworks (who is owned by Viacom who also owns Paramount) signed a similar deal.