DreamWorks isn’t necessarily off limits. The IP is used by Merlin at Shrek’s Adventure (under the DreamWorks Tours branding).
As far as I know, the licensing deal was set to expire this year but has been renewed. There was also an application for capex tied to the renewal.
Internally at Merlin, I believe the options for the deal were generally viewed as:
1. Renew with exclusivity and proceed with a major refurbishment.
2. Renew without exclusivity and continue operations as-is.
DreamWorks was reportedly in favour of the capex project, given the attraction is in a rough condition.
I don’t know how the negotiations ultimately turned out. If capex was part of the agreement, a likely time for shutdown and refurbishment would have been January—but that hasn’t happened.