Dreamworks Completes
Deal With Reliance ADA
The principals of DreamWorks SKG (DWA) have completed
a long-anticipated deal with one of India’s largest entertainment
conglomerates to set up a new $1.2 billion film
company, according to people familiar with the matter.
The deal gives DreamWorks co-founder Steven Spielberg
and his team the financial support they need to leave
Viacom Inc.’s (VIA) Paramount Pictures and start a new
venture. Under the signed agreement, Mumbai-based
Reliance ADA Group will invest $500 million equity and
provide another $700 million in debt through J.P Morgan
Chase & Co. toward the new venture, which will produce a
slate of about six films a year. News of the talks between
DreamWorks principals and Reliance first surfaced in June,
but an agreement wasn’t finalized until now, these people
said. The new company will be headed by Mr. Spielberg
and DreamWorks Chief Executive Stacey Snider.
Written by: Scottrade