Anil Ambani enters Hollywood, signs deal with Spielberg

In one of the biggest and the most high-profile deals in global cinema in recent times, Anil Ambani-promoted Reliance Big Entertainment (RBE) has finally signed its much-hyped 50:50 joint venture with Hollywood’s iconic director Steven Spielberg’s Los Angeles-based production house DreamWorks Studios to produce six films per year. DreamWorks Studios will get an initial funding of $825 million and the first production would start this year for release in 2010.

In a late-evening global conference call from New York on Wednesday, Ambani and Spielberg said the movies (produced by DreamWorks) would be globally distributed by Walt Disney, while the exclusive rights for India, including DTH, DVD and theatre rights, would rest with Reliance Big Entertainment.

Of the $825 million, $325 million will be equity infused by Anil Ambani as his personal investment, $150 million will come from The Walt Disney Company as a distribution advance, and the rest will be funded by JP Morgan via debt.

Ambani announced that his associate Amitabh Jhunjhunwala and Spielberg's partner for decades Stacey Snider (who has been associated with Eric Brockovich, The Mummy and American Pie), would also serve on the four-member board, also consisting of Ambani and Spielberg.

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."

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.''

The new motion picture company, formed between Reliance BIG Entertainment and DreamWorks, has been functioning since November 2008 from DreamWorks’ long-time offices in Los Angeles, California, the media announcement said.