Anil Dhirubhai Ambani Group (R-ADAG) has completed the first phase of the transaction with Steven Spielberg's DreamWorks Studio to jointly produce movies. This is part of the $825 million multi movie deal signed between Anil Amabni and Spielberg's DreamWorks. Under the deal DreamWorks Studio will reel out five to six films annually.
Of the $825 million, a syndication of $325 million senior debt has been arranged by J.P. Morgan Securities, which is being equaled by Reliance Big Entertainment, the entertainment arm of R-ADAG, by way of equity commitment.
“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,” said Ambani in a release.
Walt Disney Studio has been given global marketing and distribution rights for DreamWorks. However, in India the distribution right has been retained by Reliance Big Entertainment, the entertainment wing of R-ADAG.
Walt Disney Studio will also extend a loan of $125 million to the Ambani and Spielberg venture as part of the deal. Joining the board of DreamWork studio will be Vice Chairman of Reliance Capital, Amitabh Jhunjhunwala and J.P. Morgan’s Alan J Levine.
DreamWorks Studios was formed in 1994 by Steven Spielberg, Jeffrey Katzenberg, and David Geffen.
The studio has won three consecutive Best Picture Academy Awards for American Beauty, Gladiator and A Beautiful Mind. Other successful films in the companies’ kitty are Saving Private Ryan, The Ring, Minority Report, War of the Worlds, Dreamgirls, and Transformers.
