Set to create a new motion picture studio with Steven Spielberg and Stacy Snider.
In order to kickstart its entry into Hollywood, Anil Ambani's Reliance ADA Group is set to create a new motion picture studio with noted Hollywood producer Steven Spielberg and Stacy Snider.
This new joint venture motion picture studio with Reliance Entertainment will have an initial investment of $1.5 billion that is aimed at targeting global audiences. Snider, the former chief executive of Universal Pictures, will be the CEO of the new studio, sources said.
Reliance ADA Group is likely to invest $550 million in this venture and pick up around 50 per cent equity stake in the new company that will be based in Hollywood, Los Angeles and is expected to launch in January 2009.
According to sources, this deal is expected to finance a minimum of 30-35 movies over the next five years.
Reliance ADA Group had started talks with Spielberg after it became clear that the maverick director would walk out of his tie-up with Paramount, which was an equity partner in the company promoted by him Dreamworks SKG.
More From This Section
Earlier this year, Reliance had announced it would produce development funds to about 70 movies in nine languages between 2008-2010. The list included developing and co-producing movies with Hollywood stars George Clooney, Brad Pitt, Tom Hanks, Jay Roach, Nicholas Cage and Chris Columbus.
In February, billionaire George Soros bought a 3 per cent stake in the company for $100 million (Rs 460 crore), valuing the company at $3.3 billion.
Reliance Entertainment, through its theatre chain Adlabs, recently clinched acquisitions in the US, Malaysia and Mauritius, and is on the prowl for more. It has 251 screens in the US, 51 screens in Malaysia and six in Mauritius.
The company also formed a 50:50 joint venture with London-based Great Wheel, the rights holders to London Eye and the Singapore Flyer structures, to develop and operate great wheels and observation structures in Indian cities.