Anil Ambani's Reliance Big Entertainment (RBE) sealed the funding of it's much-hyped 50:50 joint venture with Steven Spielberg’s DreamWorks

Mumbai, July 15: Anil Dhirubhai Ambani looks all set to storm Hollywood in the company of Steven Spielberg, the three-time Oscar winner who directed movies such as Schindler’s List and Saving Private Ryan.

Ambani and Spielberg have been in talks for close to a year and even formed a new motion picture company last October. The new company is a continuation of DreamWorks Studios, which was formed in 1994 by Steven Spielberg, Jeffrey Katzenberg, and David Geffen.

On Wednesday, the two met in New York along with Stacey Snider, chief executive of DreamWorks SKG, and agreed to make five to six films every year. The initial investment will be $825 million.

Spielberg, who became an acclaimed director after he made Jaws in 1975, formed DreamWorks Studios after he and Snider severed ties with Paramount Pictures.

Sources at the Anil Ambani group said this was the first big foray into Hollywood by any Indian company. Several firms have worked on animation segments for Hollywood films but no one has formed a motion picture company with an Oscar-winning director.

Walt Disney Company will handle marketing and distribution of the studio’s films around the world except India where Anil Ambani’s Reliance Big Entertainment Ltd will retain distribution rights.

The initial phase of funding will include an equity investment from the Anil Ambani group, debt financing from a syndication of banks, as well as funding from Disney. Although the extent of funding from the Ambani group is not known, it is speculated to be $300-$400 million.

DreamWorks expects to start its first film for the new studio later this year.

The film company has also been acquiring properties and developing projects for release in 2010. The first film to be produced by the new company will be announced shortly.

“This venture with Reliance opens a new door to our future,” said Steven 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 the financial muscle required to realise their dreams.”