US-based billionaire B K Modi is in advanced stages of negotiations with Los Angeles-based Culver Studios, a well-known independent studio in Hollywood, to buy out a majority stake.
The deal is expected to be struck at $150 million (about Rs 600 crore). If the deal goes through, it will mark the entry of Indian companies in Hollywood studios.
After selling off Spice Communications to Idea Cellular, B K Modi has been looking at foraying into the entertainment space. His first concrete foray in this direction came with a minority stake in broadcasting company Sony Entertainment Television in India.
Mody is also foraying into the audio business and plans to make movies. "Modi is in the final stages of talks for buying Culver Studios for $150 million," said a source close to the development.
Culver Studios is a renowned movie studio where Hollywood classics, such as Gone With The Wind, Steven Spielberg's Extra Terrestrial, Armageddon, Rush Hour 3, What Women Want, City of Angels and Stuart Little were made. Some of the popular television shows such as Batman, Star Trek, Deal Or No Deal, Mad About You, America's Next Top Model were shot at the studio.
The studio, founded in early 1900s by Thomas Ince, has over the years changed ownership several times from RKO in 1928 to the legendary Howard Huges in 1950 and so on. In 1991 Sony Corporation bought the studio and later in 2004 sold it to PCCP Studio City Los Angeles.
Culver Studio has a full service production facility, with 13 sound stages, mansion, bungalows and other support facilities.
According to sources, Modi's acquisition will further fuel his entry into the entertainment space. He plans to enter the filmdom through potential joint ventures or co-production deals with Hollywood and Bollywood production houses.
"This studio will be used as a rental facility for productions under the Modi banner and will also be lent to other Hollywood studios such as Warner Brothers and Sony Pictures," said the source.