Reliance Entertainment has finally struck a deal with Steven Spielberg’s DreamWorks to jointly make Hollywood films, according to foreign media reports.
The deal was signed last month, the reports said quoting sources close to the developments. When contacted, Reliance Entertainment President Rajesh Sawhney declined to comment.
Reports said the Anil Ambani company would invest $500 million and provide another $700 million in debt through J P Morgan Chase to produce about half a dozen films starring big names like Angelina Jolie, Julia Roberts, Brad Pitt and Nicolas Cage.
Reliance had announced in May that it would provide development funds to Hollywood production houses including Nicolas Cage’s Saturn Productions, Jim Carrey’s JC Entertainment, George Clooney’s Smokehouse Productions, Chris Columbus’ 1492 Pictures, Tom Hanks’ Playtone Production, Brad Pitt’s Plan B Entertainment, and Jay Roach’s Everyman Pictures.
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.
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The company 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.
The deal with Reliance will give DreamWorks independence from Viacom Inc subsidiary Paramount Pictures, which bought the production house for $1.6 billion in 2006, and save Paramount overhead costs by cutting loose the high-priced director.
Paramount released a statement wishing the DreamWorks principals well and said it would waive certain provisions of their original deal to allow them to join the new company without delay.