Spielberg studio gets financing from Reliance Entertainment

LOS ANGELES Wed Apr 11, 2012 10:34am IST

Director Steven Spielberg in San Diego, California in this July 22, 2011 file photo. REUTERS/Mike Blake/Files

Director Steven Spielberg in San Diego, California in this July 22, 2011 file photo.

Credit: Reuters/Mike Blake/Files

Related Topics

Stocks

   

LOS ANGELES (Reuters) - DreamWorks Studios, the film company headed by director Steven Spielberg, will get around $200 million from its partner Reliance Entertainment to continue making films, according to a person with knowledge of the transaction.

The financing is the second part of a 2009 agreement to finance the studio. In that agreement, Reliance Entertainment, a unit of Reliance ADA Group, provided the partnership with $325 million of capital for an undisclosed stake.

The studio, which made Spielberg's "War Horse" and "The Help" last year, will produce between three and five films a year, a reduction from the four to six that it initially announced, said the person.

Reliance's 2009 investment came after months of negotiation with DreamWorks that reduced the Indian company's investment from a planned $650 million, as large-scale financing from banks became more difficult to secure. At the time, the two companies said in a press release that the investment was the first stage.

The Walt Disney Co (DIS.N) distributes and markets DreamWorks films under a five-year distribution agreement for "approximately" six films a year.

Reliance will retain its rights to distribute DreamWorks-produced films in India, the person familiar with the new transaction said.

DreamWorks is producing Spielberg's "Lincoln," scheduled to be released in December, with News Corp's (NWSA.O) Fox studio, according to the movie information website, IMDB.com. The film will be released by Disney in the U.S. and by Fox in Japan.

The financing deal was first reported by The New York Times on its website, but no details on financial terms were included. DreamWorks had no comment. Reliance representatives could not be reached for comment.

Reliance has been active in financing films in recent years, and said at the time of the 2009 announcement that it had invested more than $1 billion to produce films in English, Hindi and other Indian languages.

It also had development deals with several producers, including George Clooney's Smokehouse Productions and Tom Hanks' Playtone Productions and last year released the Bollywood film "Bodyguard" in the U.S.

The bankers for the joint venture, led by J.P. Morgan, did not change, the person said. The group provided senior debt of $325 million at the time.

(Reporting By Ronald Grover; Editing by Carol Bishopric)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

Sensex, Nifty rise to second consecutive record high

Sensex, Nifty rise to second consecutive record high

The BSE Sensex and Nifty on Friday rose to their second consecutive record highs. The 30-share Sensex surged as much as 1.3 percent to an all-time high of 27,706.80. The broader Nifty gained as much as 1.28 percent to a record of 8,275.15.  Full Article 

REUTERS SHOWCASE

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay"  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage