Spielberg Secures Reliance Deal

LOS ANGELES, September 22:
After months of speculation, Steven Spielberg has clinched a deal with India’s
Reliance ADA Group to finance his exit from Paramount Pictures, and is
reportedly taking the DreamWorks SKG brand with him.

Spielberg and DreamWorks’
cofounder David Geffen are said to be planning on taking their entire
marketing, production and development teams to the new DreamWorks, which has an
initial capital of $1.2 billion. Reliance Big Entertainment is contributing
about $500 million in equity, while J.P. Morgan Chase & Co will provide
$700 million in debt. Upon completion of the transaction, DreamWorks will begin
searching for a new partner to distribute the planned six releases per year.

Geffen is said to have had
a strained relationship with Paramount chief Brad Grey since the Viacom-owned
studio bought DreamWorks in 2005. A Paramount statement cited in wire reports
states that it "waived certain provisions from the original deal to clear
the way for the DreamWorks principals and their employees to join their new
company without delay.”

—By Mansha Daswani