Money Matters, Simplified.
Indian tycoon Ambani makes his move on Hollywood
by Kangna Agarwal - July 16, 2009 - comments
Of the $825 million invested in the joint venture, $325 million will be imbued by Anil Ambani as his personal investment
Mumbai, July 16: Indian businessman Anil Ambani has signed one of the biggest deals, amounting to $825 million, with the Hollywood's illustrious filmmaker, Steven Spielberg.
So far, this deal between Reliance Big Entertainment and Los Angeles-based production house Dreamworks Studios is the most high-profile deal in the global cinema.
Invested figures
Of the $825 million, $325 million will be imbued by Anil Ambani as his personal investment, the Walt Disney Company will invest $150 million as a distribution advance, and the rest will be funded by banks and institutions.
This joint venture will produce six films for global audiences, per year.
Investors’ sentiments
Ambani said, "We are delighted to partner with such talented individuals as Steven Spielberg and Stacey Snider.
"Ever since we looked at their business plan, I have never doubted that we would succeed in providing them with financial muscle required to realize their dreams."
Spielberg said he was looking forward to visiting India to meet filmmakers. "This venture with Reliance opens a new door to our future. Their visionary step has given us a new set of dreams to work toward," he added.
Copyrights and the first release
The movies rights would be vested with the Walt Disney while exclusive rights for DTH, DVD and theater rights would rest with Reliance Big Entertainment.
The first Dreamworks motion picture to be released under the Touchstone Pictures banner is scheduled to hit theatres by 2010.
Ambani’s associate Amitabh Jhunjhunwala and Spielberg's partner, Stacey Snider, who has been associated with projects like “Eric Brockovich”, “The Mummy” and “American Pie”, would also work for Dreamworks production house.