Reliance in US$2b talks with Hollywood

By Ramola Talwar Badam  |   2008-6-25  |     NEWSPAPER EDITION

INDIA'S Reliance Entertainment and other investors are in talks with Hollywood's DreamWorks SKG to raise up to US$2 billion to create a movie venture, industry insiders said yesterday.

Dreamworks, the movie studio founded in 1994 by moguls Steven Spielberg, David Geffen and Jeffrey Katzenberg, is looking to raise a total of US$2 billion from investors ?? US$1 billion in equity and another US$1 billion for new movie projects, the sources said.

There are four to five other parties involved in the talks, including Universal Pictures, one source said.

Reliance Entertainment, part of one of India's top conglomerates, the Reliance ADA Group, plans to invest more than US$500 million to US$600 million in equity, the same source said.

The Los Angeles Times reported last week that DreamWorks SKG is trying to raise about US$1 billion to break from Viacom Inc and its movie studio, Paramount Pictures.

Viacom bought DreamWorks SKG in 2006 for US$1.6 billion, but the relationship has declined despite hits such as "Transformers" and "Dreamgirls."

Viacom CEO Philippe Dauman said last year his company was planning for Spielberg's possible departure following reports that the Academy Award-winning director was unhappy at Paramount.

Meanwhile, India's movie industry has expanded as several foreign studios such as Sony Corp, Viacom and Walt Disney Co sign co-production deals.