Companies

Reliance Ent to give $200m to Spielberg’s Dreamworks

PTI New York | Updated on March 12, 2018 Published on April 11, 2012

Reliance Entertainment, a unit of the Anil Ambani-led ADA Group, is expected to give $200 million to Hollywood director, Mr Steven Spielberg’s DreamWorks Studios, a deal which will extend a new financial lease of life to the struggling California-based film company.

Reliance Entertainment has “agreed in-principle” to continue financing the film studio Spielberg founded. Under the arrangement, DreamWorks would make fewer movies in a year, down to about three from the six it had originally intended, reported The New York Times.

The report said DreamWorks executives and representatives had been seeking since earlier this year to augment an initial round of financing under which Reliance contributed $325 million in equity, while banks led by J.P. Morgan Securities provided a matching amount in loans.

Amid financial woes, mainly due to poor performance by some of its movies, operations at DreamWorks have slowed down.

The financial assistance by Reliance will help the studio pick up the pace in moviemaking, helping it continue to make studio-level pictures.

While Reliance has firmly committed to the new funding, J.P. Morgan and other lenders remain in place and may eventually be asked to extend or revise their own arrangements, the report quoted people briefed on the deal as saying.

Hollywood has been going through a rough patch in the past year or so. Movie-going hit a 16-year low last year and DVD sales continue to remain unimpressive.

DreamWorks’ science-fiction film I Am Number Four, Cowboys & Aliens flopped. While Academy award nominee The Help was a hit, movies such as Fright Night, Real Steel and Spielberg’s own War Horse either lost money or did not make much.

Published on April 11, 2012
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