Anil Ambani's hollywood dream is coming true. His Reliance Big Entertainment has agreed to provide equity funding of $500 million to Steven Spielberg's hollywood production company DreamWorks. In a related transaction, the latter has also secured an additional $500 million loan from banks led by JPMorgan Securities which will give it a warchest of a total $1 billion. This will help DreamWorks to form a new company and also sever its current ties with Paramount, reports said. The deal was signed Friday, Hollywood Reporter said.
Apparently, Paramount has issued a statement saying that the departing DreamWorks principals were also free to take their employees with them. This will make things easier for Steven Spielberg since Paramount has waived of certain exit clauses that were binding on DreamWorks employees.
It was in 2006, Paramount acquired DreamWorks in a $1.6 billion deal. Now it remains to be seen how Anil Ambani and Steven Spielberg team will work together.