Reliance Entertainment, Spielberg deal completed: Sources

Anil Ambani group's Reliance Entertainment and DreamWorks SKG of acclaimed director Steven Spielberg have completed the much-talked about deal for jointly making Hollywood films.

Sources in the know said that the deal was completed last evening but did not give details of the agreement that would mark the entry of Reliance Entertainment in Hollywood, a preliminary announcement for which was made in Cannes Film festival earlier during the year.

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Reliance Entertainment officials did not comment on the development immediately.

Meanwhile, AP quoted Wall Street Journal saying that Reliance will invest $500 million and provide another $700 million in debt through JPMorgan Chase & Co for production of about half a dozen films.

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The joint venture between Reliance Big Entertainment and Dreamworks Movie Studios will make movies with celebrities including Angelina Jolie, Julia Roberts, Brad Pitt and Nicolas Cage.

Reliance Big Entertainment had announced in May that it would provide development funds to eight Hollywood production houses.

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Reliance Big Entertainment chairman Amit Khanna had said, "We are pleased to have devised this method of investing, whereby Reliance Big Picture can help advance the goals of several of the most important creators in the global industry. I expect to have further such development deals in the near future."

The development funds would be provided to eight creative forces in Hollywood, comprising Nicolas Cage's Saturn Productions, Jim Carrey's JC Entertainment, George Clooney's Smokehouse Productions, Chris Columbus' 1492 Pictures, Tom Hanks' Playtone Production, Brad Pitt's Plan B Entertainment and Jay Roach's Everyman Pictures.

Reliance Big Picture, a division of Reliance Big Entertainment focusing on media investment outside India, sees the development deals as the first major building block towards creation of a new-generation media company.

The agreement between DreamWorks SKG and Reliance Big Entertainment will create $1.2 billion company, Wall Street Journal quoting sources said.

The deal will give DreamWorks financial support, which they need to leave Viacom Inc's Paramount Pictures and start a new venture.

Paramount Pictures brought the production house for $1.6 billion in 2006.

DreamWorks team is also considering to sign a deal with Time Warner Inc's HBO, WSJ said.

Further after the completion of the agreement with Reliance, the new JV will decide on distribution of its films.