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Dreamworks gets $200-mn lifeline

DreamWorks Studios, the film company headed by director Steven Spielberg, will get around $200 million from its partner Reliance Entertainment to continue making films, according to a person with knowledge of the transaction.

business Updated: Apr 11, 2012 22:39 IST

Reuters
Hindustantimes
         

DreamWorks Studios, the film company headed by director Steven Spielberg, will get around $200 million from its partner Reliance Entertainment to continue making films, according to a person with knowledge of the transaction.

The financing is the second part of a 2009 agreement to finance the studio. In that agreement, Reliance Entertainment, a unit of Reliance ADA Group, provided the partnership with $325 million of capital for an undisclosed stake.

The studio, which made Spielberg’s War Horse and The Help last year, will produce between three and five films a year, a reduction from the four to six that it initially announced, said the person.

Reliance’s 2009 investment came after months of negotiation with DreamWorks that reduced its investment from a planned $650 million, as large-scale financing from banks became more difficult to secure. At the time, the two companies said in a press release that the investment was the first stage.

The Walt Disney Co distributes and markets DreamWorks films under a five-year distribution agreement for ‘approximately’ six films a year.

Reliance will retain its rights to distribute DreamWorks-produced films in India.

First Published: Apr 11, 2012 22:37 IST

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