Dreamworks, ADAG complete phase 1 funding for new company

A month after Reliance Big Entertainment announced that it will make funds to the tune of $825 million available for DreamWorks Studios whose principal partners are Steven Spielberg and Stacey Snider, the first phase of funding for their new motion picture company was completed late on Monday in Los Angeles.

While JP Morgan Securities arranged $325 million of debt, Reliance Big Entertainment matched the amount with equity commitment. The Walt Disney Studios, who will handle marketing and distribution for the studio, will also extend a loan -- $175 million -- to DreamWorks as part of the distribution deal.

A BIG release quoted Anil Ambani as saying: "Our partnership with Stacey and Steven is the cornerstone of our Hollywood strategy as we grow our film interests across the globe. Given our faith in the business plan that they presented to us and despite the current economic climate, we were always confident that this day would come.

Now Stacey and Steven can focus on producing more of the great films for which they are renowned."

"This will allow us to move ahead quickly into production with our first group of films," said Stacey Snider and Steven Spielberg in a joint statement.