×
You will be redirected back to your article in seconds

Reliance, DreamWorks close deal

Studio gets $825 million in financing

The latest incarnation of DreamWorks launched Monday as principal partners Steven Spielberg and Stacey Snider and India’s Reliance Big Pictures announced completion of the first phase of funding for DreamWorks 3.0.

Anil Dhirubhai Ambani, chair of Reliance Big parent company Reliance Anil Dhirubhai Ambani Group, made the joint announcement with Spielberg and Snider.

As part of the deal, J.P. Morgan Securities has arranged for $325 million in senior debt that Reliance will match. Walt Disney Studios which will distribute and market DreamWorks films, also will extend a loan to DreamWorks as part of the distrib deal.

New venture between Reliance and DreamWorks has been in the works for more than a year, but was delayed by the economic crash and the freezing of the credit markets.

“This will allow us to move ahead quickly into production with our first group of films, said Stacey Snider and Steven Spielberg in a joint statement.

Statement continued: “We wish to thank Anil personally for his foresight and fortitude over the past months. We congratulate J.P. Morgan for their leadership in attracting this funding during today’s most challenging financial environment.  Our thanks also to our distribution partner Disney who we look forward to working with in getting our movies out to the global audience.”

Joining Snider and Spielberg on DreamWorks’ Board of Directors on behalf of the Reliance ADA Group are Amitabh Jhunjhunwala, vice chairman, Reliance Capital, and J.P. Morgan’s Alan J. Levine.

“Our partnership with Stacey and Steven is the cornerstone of our Hollywood strategy as we grow our film interests across the globe.  Given our faith in the business plan that they presented to us and despite the current economic climate, we were always confident that this day would come.  Now Stacey and Steven can focus on producing more of the great films for which they are renowned,” Ambani said.

DreamWorks has a long-term distribution deal with Disney which will market and distribute approximately six live-action films a year for the company, except for India where Reliance Big Entertainment will retain distribution rights.  The first release under Disney’s Touchstone banner is expected in 2010.

More Biz

  • Daily Show Viacom

    DirecTV, Viacom Avert Blackout After Marathon Negotiation

    DirecTV and Viacom have agreed on a carriage renewal pact covering a raft of Viacom’s cable channels after a marathon negotiation over the weekend. In a joint statement early Monday, the companies said: “We are pleased to announce a renewed Viacom-AT&T contract that includes continued carriage of Viacom services across multiple AT&T platforms and products. [...]

  • Discovery CEO David Zaslav Sees 2018

    Discovery CEO David Zaslav Sees 2018 Compensation Soar to $129.4 Million

    Discovery Inc. president-CEO David Zaslav is once again making headlines for an enormous compensation package. Zaslav’s 2018 compensation soared to $129.44 million in 2018, fueled by stock options and grants awarded as the longtime Discovery chief signed a new employment contract last July that takes him through 2023 at the cable programming group. Zaslav received [...]

  • Jonathan Lamy RIAA

    Jonathan Lamy Stepping Down From RIAA

    Jonathan Lamy, the Recording Industry Association of America’s longtime executive VP of communications and marketing, is stepping down from his post after 17 years, he announced today. As he put it in an email to Variety, “I started back in 2002, which means it’s been 17+ years, four different RIAA CEOs, three format changes and [...]

  • Fox Layoffs

    Disney-21st Fox Layoffs: TV Divisions Brace for Deep Cuts

    A second day of layoffs has begun on the Fox lot in the wake of Disney completing its acquisition of 21st Century Fox on Wednesday. Longtime 20th Century Fox Television Distribution president Mark Kaner is among the senior executives who were formally notified with severance details on Friday morning. 21st Century Fox’s international TV sales [...]

  • anthony pellicano

    Hollywood Fixer Anthony Pellicano Released From Federal Prison

    Anthony Pellicano, the Hollywood private eye whose wiretapping case riveted the industry a decade ago, was released from a federal prison on Friday, a prison spokeswoman confirmed. Pellicano was sentenced in 2008 to 15 years, following his conviction on 78 charges of wiretapping, racketeering, conspiracy and wire fraud. He had been in custody since 2003, [...]

  • This image taken from the Twitter

    HBO’s Reaction to Trump’s ‘Game of Thrones’ Campaign

    Everyone wants a piece of the “Game of Thrones” lemon cake. From Bud Light to Red Bull the world of Westeros is open to a lot of brand partnerships, unless you’re using that iconic typeface to push a political agenda. In November of 2018 President Donald Trump unveiled a “Thrones” inspired poster with the words [...]

  • Leaving Neverland HBO

    'Leaving Neverland' Lawsuit Proves to Be a Judicial Hot Potato

    The Michael Jackson estate sued HBO last month for airing the documentary “Leaving Neverland,” which accuses the late King of Pop of serial child sexual abuse. Since then, the case has had a difficult time finding a judge to handle it. Three federal judges have recused themselves in the last week, citing potential financial conflicts [...]

More From Our Brands

Access exclusive content