The DreamWorks SKG of Steven Spielberg have signed a deal with Anil Ambani’s Reliance ADA Group of India to establish a new $1.2 billion film company.
Under the deal Reliance will invest about $500 million in equity, while J.P. Morgan Chase & Co will provide $700 million in debt toward the new venture.
With the deal completed, it is expected the DreamWorks principals will turn their attention to finding a partner to distribute roughly six DreamWorks films a year. Spielberg has long ties to General Electric Co’s Universal Pictures, which is widely regarded as a leading choice to release DreamWorks future pictures.
In turning to Reliance, DreamWorks wins access to a stable source of financing, while Reliance stands poised to use the partnership to expand its reach into the U.S. movie market.
Reliance, which is controlled by billionaire Anil Ambani, in May signed deals with eight Hollywood production houses run by A-list actors, including George Clooney and Brad Pitt.