Steven Spielberg, Reliance continue talks

July 03, 2008 Representatives of Steven Spielberg and the Indian conglomerate Reliance continue to talk daily about terms of a $1.5 billion proposal to fund a privately owned DreamWorks that would produce more than 30 films over the next five years. The business plan being discussed would see Spielberg and top DreamWorks execs create a new company financed with about $550 million in equity funding by Reliance, a senior debt facility and possible additional equity from whichever studio is chosen as a theatrical distributor. Paramount struck a deal to acquire DreamWorks in December 2005 and will continue to distribute all DreamWorks-branded films at least through year's end, when contract provisions allow Spielberg to opt out of his Paramount deal and take DreamWorks chairman David Geffen, DreamWorks CEO Stacey Snider and the DreamWorks name with him.

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