Reliance Adag & Spielberg's Dreamworks Skg Deal Inked

[Arun 795]

Economic Times

20/09/08

Reliance Anil Dhirubhai Ambani Group (ADAG) has finally signed the much touted deal with Steven Spielberg's DreamWorks SKG.

According to sources close to the development, ADAG entertainment arm Reliance BIG Entertainment will invest $ 1.5 billion in DreamWorks SKG via debt and equity.

Reports suggest that Reliance ADAG will pump in $550 million as equity investment while JPMorgan Chase & Co. will lead the $700 million debt financing. According to reports the total investment will be in the range of $ 1.2 - $ 1.3 billion, however the total sum to be pumped in the venture will be $1.5 billion.

"The company will be investing in a slate of 32 movies to be made over a period of six years," says a source in Reliance ADAG.

In a simultaneous development, Paramount has relieved DreamWorks founders Spielberg and David Geffen along with DreamWorks CEO Stacey Snider with immediate effect so as to join this new venture.

Spielberg has been associated with Viacom's Paramount Studio for the last three years when Paramount acquired the DreamWorks live-action studio in 2005.

Earlier this year, Reliance ADAG's entertainment arm Reliance BIG Entertainment has also signed development fund deals with the production houses of Hollywood stars like Brad Pitt, Tom Hanks, Jay Roach, George Clooney, Nicholas Cage and Chris Columbus.