MUMBAI: DreamWorks and Reliance Big Entertainment have locked the first phase of financing, sealing an amount of $825 million that would allow the joint venture to make six films annually.
The final piece was the $325 million tied up by JP Morgan in a syndicated financing arrangement with a clutch of banks that include Bank of America, City National Bank, Union Bank of California and Israel Discount Bank.
Reliance Big Entertainment is putting in a matching amount as equity financing while distribution partner Walt Disney Studios has committed $175 million. The funding will allow DreamWorks’ Steven Spielberg to start shooting his first film project this year.
DreamWorks had struck a joint venture arrangement with Reliance Big Entertainment after exiting from Paramount. The global economic downturn had delayed Spielberg’s efforts to find financial partners to back up his slate of film projects.
Reliance ADAG chairman Anil Ambani aims to build a film empire that has interests across the globe. The partnership with DreamWorks is crucial to his Hollywood strategy.
The first film scheduled for release is 2010.
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