Reliance Entertainment completes deal with Spielberg's DreamWorks
20 Sep 2008
Mumbai: Reliance-Anil Dhirubhai Ambani Group firm Reliance Entertainment has completed a financing deal with Steven Spielberg's DreamWorks SKG on Friday, under which the Indian group would provide a total of $1.2 billion funding to the film company co-founded by director Steven Spielberg.
Reliance Entertainment made its Hollywood entry amidst the subprime mortgage crisis that squeezed the credit market and a growing feud between DreamWorks co-founders Spielberg and David Griffin with Paramount Pictures and its parent Viacom Inc.
DreamWorks, which parted ways with Paramount Pictures, said it planned to make movies with celebrities, including Angelina Jolie, Julia Roberts, Brad Pitt and Nicolas Cage.
Relations between the DreamWorks principals and Paramount have been strained since Paramount was acquired by the Viacom in 2006.
DreamWorks, however, continued to churn out successful movies for Paramount, including last year's hits `Transformers,' `Disturbia' and `Blades of Glory.'
DreamWorks Animation, a separate market-listed studio, is being run by another DreamWorks co-founder, Jeffrey Katz
Paramount Pictures, meanwhile, said it had waived ''certain provisions'' from its original deal with DreamWorks ''to clear the way for the DreamWorks principals and their employees to join their new company without delay.''
DreamWorks plans to produce around six films annually and the company is looking for a partner to distribute the films.
Spielberg has ties with Universal Pictures, which is widely regarded as a leading choice to release future DreamWorks movies. But no deal with the General Electric-controlled studio is known to have been reached.
Reliance Entertainment arm Reliance Big Entertainment had in May announced plans to provide development funds to Hollywood production houses, including Nicolas Cage's Saturn Productions, Jim Carrey's JC Entertainment, George Clooney's Smokehouse Productions, Chris Columbus' 1492 Pictures, Tom Hanks' Playtone Production, Brad Pitt's Plan B Entertainment and Jay Roach's Everyman Pictures.
Reliance Big Picture is a division of Reliance Big Entertainment focusing on media investment outside India.