Spielberg's DreamWorks new venture with Reliance ADA

by Amitjha | September 19, 2008 at 10:23 pm

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Reliance ADA group of india signed a deal worth $1.2 billion with steven spielberg's Dreamworks SKG. They are going to start a new film company .

Reliance ADA, controled by billionaire Anil Ambani,in may signed deals with eight Hollywood production houses run by top actors, including George Cloney and Brad Pitt.

The Hollywood-Bollywood linkup of DreamWorks and the Mumbai-based entertainment, financial and telecommunications giant caps two years of speculation and feuding between Spielberg and his DreamWorks co-founder David Geffen with executives from Paramount and its corporate parent, Viacom Inc.

DreamWorks had no immediate comment on formation of the new film company, which two sources close to the deal valued at $1.2 billion.

The transaction was confirmed in a statement by Paramount, saying it had waived "certain provisions" from its original deal with DreamWorks "to clear the way for the DreamWorks principals and their employees to join their new company without delay."

Under the deal, as reported by The Wall Street Journal, Reliance will invest about $500 million in equity, while J.P. Morgan Chase & Co will provide $700 million in debt toward the new venture.