MUMBAI, India India's Reliance Entertainment and other investors are in talks with Hollywood's DreamWorks SKG to raise up to $2 billion to create a movie venture, two people familiar with negotiations said Tuesday.
DreamWorks, the movie studio founded in 1994 by Hollywood moguls Steven Spielberg, David Geffen and Jeffrey Katzenberg, is looking to raise a total of $2 billion from investors $1 billion in equity and another $1 billion for new movie projects, the two people with knowledge of the talks told The Associated Press. They said they could not be named because negotiations were ongoing.
There are four to five other parties involved in the talks, including Universal Pictures, one of the individuals said. It will be some time before the deal is signed, he said, without elaborating.
Reliance Entertainment part of one of India's top conglomerates, Reliance ADA Group plans to invest more than $500 million in equity, that same person said. The Wall Street Journal reported last week that Reliance was considering an investment of about that size in a deal with DreamWorks.
DreamWorks and General Electric Co. subsidiary NBC Universal, which owns Universal Pictures, had no immediate comment when contacted Tuesday by The Associated Press.
The Los Angeles Times reported last week that DreamWorks was in talks with investors to raise about $1 billion to break from Viacom Inc. and Viacom's movie studio, Paramount Pictures, and become an independent studio again.