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Big Entertainment to ink $ 1.5 billion deal with DreamWorks
Big Entertainment and Dream Works will together produce 35 Hollywood movies in five years
Big Entertainment will tentatively finalise its deal with Steven Spielberg's DreamWorks Studios to launch a new independent studio based in the USA in January 2009. The new venture will be called DreamWorks Studios. As a part of this deal, the new studio will produce 35 Hollywood movies in five years. According to sources, Reliance ADAG will hold a 50 per cent stake in the new film production company.
The deal is pegged to be worth $ 1.5 billion. It is tipped that Stacey Snider of DreamWorks will be the chief executive officer of the new venture. Though the officials of Big Entertainment refused to comment on the development, sources close to the deal confirmed the information.
A well placed source in the industry informed afaqs!, “Big Entertainment will be funding the entire venture, whereas DreamWorks will put in its expertise. The new studio will produce movies aimed at world markets.”
“The deal with DreamWorks will mark the entry of Reliance ADAG’s entertainment wing into Hollywood's mega-billion dollars entertainment industry,” added the source. The new studio will aim at making up to 10 movies a year. The movies made under this deal will be distributed by Universal, the studio Spielberg was earlier associated with.
Paramount Pictures recently formalised its separation from DreamWorks. Apart from Snider, David Geffen of DreamWorks will also join the venture. Evidently, the joint venture plans to make movies with star celebs such as Angelina Jolie, Julia Roberts, Brad Pitt and Nicolas Cage.
Earlier this year, Big Entertainment tied-up with many Hollywood stars such as Jim Carrey, Tom Hanks, Brad Pitt, Nicolas Cage and George Clooney. Under the deal, it will pump in $1 billion in their production houses.
As a part of expanding its film vertical, Big Entertainment bought many multiplexes in New York, Los Angeles, Chicago and Washington DC and 250 screens across the USA.
For the record, Reliance Entertainment, spearheaded by Anil Ambani, forayed into the entertainment industry in 2005 by acquiring Adlabs.