Reliance ADAG, DreamWorks close to $825 mln film financing deal

By Alex Dobuzinskis

LOS ANGELES (Reuters) - Director Steven Spielberg's DreamWorks Studios could receive $825 million in film financing to begin producing movies starting this year, Reliance ADA Group which is involved in deal talks said on Wednesday.

The Indian conglomerate is in talks with DreamWorks Studios partners Stacey Snider and Spielberg in New York, and the $825 million figure has emerged from those talks as a possible funding slate for DreamWorks Studios.

The deal between the two companies, which announced a plan to work together last year, has not been finalized.

But the ongoing negotiations over financing come after DreamWorks Studios said in February that the Walt Disney Co would distribute its films.

Under the terms of the deal, which could allow DreamWorks to make five to six films a year, Reliance would match whatever financing DreamWorks can get from a syndication of banks.

The $825 million funding slate announced by Reliance would break down as $325 million from the Indian conglomerate, $325 million from the banks and $175 million from Disney.

But the total amount could change if DreamWorks raises more from banks. That would increase the matching equity investment from Reliance, which has agreed to provide up to $550 million.

The deal between Reliance and DreamWorks was initially valued at $1.2 billion, but Amit Khanna, chairman of Reliance Big Entertainment, a division of Reliance ADA Group, said that much money is not needed now.