Picture
Stacey Snider and Stephen Spielberg

Steven Spielberg and business partner Stacey Snider told The Wall Street Journal that their new film company,DreamWorks Studios, now has $825 million in capital to fund up to 21 new films during the next four years.

The financing news comes months later than expected because of DreamWorks Studios’ struggles to raise the financing. The money allows DreamWorks Studios to launch a new venture with Indian conglomerate Reliance ADA Group.

Back in July, media reports surfaced that DreamWorks Studios probably would get the $825 million needed to begin making some of the films this year.

The Journal stated that DreamWorks and financing partner J.P. Morgan Chase raised $325 million in debt financing. That figure has been matched with equity from Reliance.

Burbank-based Walt Disney Co. is contributing another $175 million. Disney also will distribute the films, the report states.

Spielberg told the Journal that the past year has been difficult for the film industry -- which has operated in an environment of Wall Street funds that now have dried up. "The past year was like balancing ourselves on a sea of rolling logs," he told the Journal.

This $325 million is only the first phase of DreamWorks Studios’ fund-raising. The film company wants to raise $550 million of total debt that Reliance will match with equity.

Now that the economic crunch has come to Hollywood, international investments in many sectors -- including the film industry -- will be more commonplace
 


Comments




Leave a Reply