Anil Ambani's Reliance ADA Group formalised its association with DreamWorks Studios promoted by Hollywood director Steven Spielberg and his partner Stacey Snider.
As part of the deal finalised on Wednesday, the two players will have a 50 per cent stake in DreamWorks and will make movies with an initial funding of $825 million (around Rs 4,125 crore), which accounts for nearly one-third of India's movie industry turnover.
Talks for this deal began in 2008 after Spielberg's deal with Paramount fell through.
The initial outlay, which will be used to produce films for three years, will come from three sources - $325 million from equity infusion by the partners, $150 million from Disney and the rest through debt from a syndicate of banks.
Under the deal, DreamWorks will make five to six films a year for global audiences, with the first production to begin this year. Spielberg and Snider said the company is already working on films like Tintin and is also talking to Clint Eastwood for a movie.
According to the terms of the deal, Walt Disney will handle the marketing and distribution of the studio's films globally, except for India, where Reliance Big Entertainment will be the distributor. The ADAG group will be represented in the board by Amitabh Jhunjhunwala and Spielberg and Snider will also be part of the board.
Speaking on a conference call from New York, Spielberg said: "We will be working only on live action and general entertainment films for global audience and not art films. Animation films will not be part of this company."
On Reliance ADA Group's part, chairman Anil Ambani said: "We are delighted to partner with such uniquely talented individuals as Steven Spielberg and Stacey Snider. Considering the business situation, this is one of the largest outlays in film production in recent times. Revenues from Indian films is only one per cent of the US market and this will change."
Asked whether DreamWorks will take over the various production deals that the ADA Group had signed with Hollywood biggies like Brad Pitt, Tom Hanks and George Clooney, Ambani said these decisions depend on whether DreamWorks finds any merit in them.
Reliance ADA Group had started talks with Spielberg in early 2008, after it became clear that the maverick director would walk out of his tie-up with Paramount, which was an equity partner in the company promoted by him Dreamworks SKG.
| Q and A |
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In a conference call from New York, Hollywood director Steven Spielberg explains the reasons for going ahead with Reliance ADA Group. He also shares his thoughts on the films his company DreamWorks will make in next three years. Excerpts: What kind of movies can we expect from DreamWorks now? |