Reliance ADA, Spielberg's DreamWorks complete funding deal: report

Mumbai: Steven Spielberg's DreamWorks SKG and Reliance ADA Group have almost concluded a deal for setting up a new film company, the Wall Street Journal said in a report.

Reliance ADA Group is investing about $500 million equity in the new movie venture and another $500 million in debt through JP Morgan Chase & Co, to provide financial backing for DreamWorks founders Steven Spielberg and David Geffen he part ways withViacom Inc's Paramount Pictures. (See: Reliance Entertainment to sign $600-million deal with Spielberg's DreamWorks Studios)

The deal with ADAG will probably help Spielberg and his DreamWorks team to leave Paramount as early as November, the report said.

Spielberg is said to be looking closely at General Electric Co's Universal Pictures, where he started his career, to distribute the venture's films, though no agreement has been reached.

Paramount acquired DreamWorks for $1.6 billion in 2006 and produced such hits as `Dreamgirls.'

While the funding and equity is close to the previous reports of $1 billion, it contrasts with the news that the studio would look for another $1 billion to finance new projects, the report added.