Hollywood Bollywood |
| Written by Abdur Rahman • Region • July 2008 |
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Hollywood had already shown symptoms of Indian influence and the fusion of cultures, over the past years when songs like “Chamma Chamma” were featured in Hollywood’s blockbuster hits like Moulin Rouge and when movies like Elizabeth were being directed by young newcomer Indian directors such as Shehkar Kapur. But it doesn’t just stop there. India’s top conglomerate, the Reliance ADA Group plans to take it to the next level by investing in one of Hollywood’s most prestigious movie studios, none other than DreamWorks SKG itself. India is the fastest growing economy in the world and the market gurus are bent upon acquiring world’s biggest companies. DreamWorks was founded in 1994 by Hollywood moguls Steven Spielberg, David Geffen and Jeffrey Katzenberg, hence the SKG. It is one of America’s major film studio’s and has over the years produced numerous blockbusters such as Mouse Hunt, The Peacemaker, Small Soldiers, American Beauty, Antz, The Haunting, Gladiator, Shrek, Transformers and a lot more. Though the company was started by Spielberg, Katzenberg and Geffen, it was later on sold to Viacom. At the moment, India's Reliance Entertainment and other investors are in talks with DreamWorks SKG to raise up to $2 billion funds to create a movie venture. There are four to five other parties involved in the talks, including Universal Pictures. It is assumed that it might be a while before a deal is signed. According to the Wall Street Journal, Reliance is considering a heavy investment in a deal with DreamWorks. At the moment it appears that they plan to invest $500 million to $600 million in equity. It has also been reported by the Los Angeles Times that DreamWorks is trying to raise money to break from Viacom Inc. and its movie studio, Paramount. Viacom bought DreamWorks SKG in 2006 for $1.6 billion, but the relationship has declined despite hits such as ‘Transformers’ and ‘Dreamgirls’. Viacom CEO, Philippe Dauman said last year his company was planning for Spielberg's possible departure following reports that the Academy Award-winning director was unhappy at Paramount.
A deal with DreamWorks might help realize the global ambitions of the Reliance group's chairman, Anil Ambani, one of the world's richest men. The conglomerate has interests in everything from power generation to financial services. It is currently in negotiations to buy MTN Group, South Africa's largest mobile phone network operator. Reliance Entertainment spearheads the conglomerate's thrust into the media and entertainment business. The company has 100 films in production and development in India. In addition to this, during the Cannes Film Festival, Reliance Big Entertainment announced it would provide about $1 billion to develop and co-produce movies with top Hollywood stars George Clooney, Brad Pitt, Nicholas Cage, and Tom Hanks. Reliance Big Entertainment, which is part of Reliance Entertainment, is involved in strategy and striking collaborations between segments such as gaming, movies, online, animation and music. Just recently, Reliance Big Entertainment cut a co-financing and development deal with 1492 Pictures, the production company responsible for three of the ‘Harry Potter’ movies, which grossed $829 million at the U.S. box office. Billionaire financier George Soros bought 3% of Reliance Big Entertainment for $100 million in February in a sign of growing interest in Indian entertainment companies. This potential venture with DreamWorks has stirred interest within the Indian industry, with filmmakers believing the deal could help India learn how Hollywood does business. Siddharth Dasgupta, former head of the entertainment division at trade body Federation of Indian Chambers of Commerce and Industry, said a DreamWorks investment would be smart for Reliance since big Hollywood names mitigated any risk of investing overseas in the movie business. With the recent acquisition of Jaguar by the Indian Tata Group, India’s giant conglomerates have started acquiring famous companies all over the world and thus Reliance’s interest in DreamWorks does not come as a surprise. India has sure come a long way and it seems like the journey has just started.
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