Anil Ambani made his debut in Hollywood film production tying up with ace directors Steven Spielberg and Stacey Snider for a joint venture where he would initially contribute Rs 4,000 crore.

In one of the biggest and the most high-profile deals in global cinema in recent times, Anil Ambani-promoted Reliance Big Entertainment (RBE) has finally signed its much-hyped 50:50 joint venture with Hollywood’s iconic director Steven Spielberg’s Los Angeles-based production house DreamWorks Studios to produce six films per year. DreamWorks Studios will get an initial funding of $825 million and the first production would start this year for release in 2010.

In a late-evening global conference call from New York on Wednesday, Ambani and Spielberg said the movies (produced by DreamWorks) would be globally distributed by Walt Disney, while the exclusive rights for India, including DTH, DVD and theatre rights, would rest with Reliance Big Entertainment.

The $825 million funding slate announced by Reliance would break down as $325 million from the Indian conglomerate, $325 million from the banks and $175 million from Disney.

But the total amount could change if DreamWorks raises more from banks. That would increase the matching equity investment from Reliance, which has agreed to provide up to $550 million.

Ambani announced that his associate Amitabh Jhunjhunwala and Spielberg’s partner for decades Stacey Snider (who has been associated with Erin Brockovich, The Mummy and American Pie), would also serve on the four-member board, also consisting of Ambani and Spielberg.
Ambani said: “We are delighted to partner with such talented individuals as Steven Spielberg and Stacey Snider. Ever since we looked at their business plan, I have never doubted that we would succeed in providing them with financial muscle.”
Spielberg said he was looking forward to visiting India to meet filmmakers. “This venture with Reliance opens a new door to our future. Their visionary step has given us a new set of dreams to work toward.”