LOS ANGELES: Legendary Hollywood director Steven Spielberg and his longtime partner Paramount Pictures formalized their divorce on Sunday, but intend to stay good friends, announced Paramount.
As part of a Hollywood trend to reach out to the booming Bollywood movie industry, Spielberg is to form a new Hollywood-based film venture worth $1.5 billion with India s Reliance ADA Group.
Spielberg, director of such legendary works as Jaws, Raiders of the Lost Ark, ET the Extraterrestrial and the Indiana Jones franchise, will hold a CEO position in the new venture alongside current Dreamworks’ CEO and co-chairman Stacey Snider.
The deal was finalized by David Geffen, co-founder with Spielberg of the Dreamworks film studio, and Reliance CEO Anil Ambani, ranked the world s sixth-richest man in 2008 by Forbes Magazine.
The venture will produce up to 35 movies in the next five years, a source close to Reliance told AFP.
Geffen will not be joining the new company, but a majority of existing Dreamworks staff is expected to be offered positions at the new company, said Paramount in a statement.
The bank JPMorgan Chase will provide up to $700 million to finance the deal, with Reliance providing an additional $550 million. The money will be used to compensate Viacom, Paramount s owner, which bought Spielberg s studios for $1.6 billion in 2006.
Paramount will have the option to co-finance and co-distribute feature films made by the new venture, said Paramount.
Also, three-time Oscar winner Spielberg will continue to produce the “Transformers franchise for Paramount, and will collaborate on three other Paramount movies, including the science-fiction remake When Worlds Collide.
Both parties said the multi-billion dollar split is amicable.
We have had a great run with the DreamWorks team both creatively and financially, said Paramount Pictures CEO Brad Grey.
In particular, it has been a true honor working closely with a storyteller of Steven s talent and stature, he said.
Spielberg, whose work at DreamWorks oversaw three consecutive Best Picture Oscars for American Beauty, Gladiator and A Beautiful Mind, seconded Grey s farewells.
Spielberg said he had enjoyed a productive creative and business collaboration with Paramount and spoke of extending the relationship for many years to come.
The Spielberg transfer from Paramount comes a day after another multi-billion dollar deal was announced between a Hollywood giant and a Bollywood studio.
On Saturday Twentieth Century Fox said it struck a multiple movie agreement with top Indian producer Vipul Amrutlal Shah, one of the most successful producers in Hindi-language cinema.
The deals are seen as a growing trend for corporatization of the Indian film industry, and reflect Bollywood s increasing appeal outside its traditional market to a wider audience. -AFP
