|
DreamWorks' Reliance angst |
|
|
|
Written by Peter Bart
|
|
Monday, 23 June 2008 |
The deal between Anil Ambani, the Indian billionaire, and DreamWorks provoked a great deal of debate last week. Under terms of the deal, which still is being refined, the Indian company, Reliance Big Entertainment of India, would invest half a billion dollars in DreamWorks, then help raise another half billion in revolving credit. DreamWorks would thus gain its freedom from Paramount (with whom it has thrived financially) and the Indians would instantly become a force in Hollywood.
Opinions of the deal among Hollywood's major players this week tended to break down by generation. To oversimplify, call them Old vs. New:
New: The deal symbolizes the globalization of the industry and the new worldwide opportunities that will spur Hollywood's growth.
Old: Many foreign players have invested big bucks in Hollywood in the past and the ventures never paid off. Think Matsushita's buyout of MCA. Think Polygram, or Vivendi, or Credit Lyonnais. Think Sony's multibillion dollar write-downs before the era of Sir Howard Stringer.
New: DreamWorks will get a new infusion of capital and autonomy with aggressive new partners who will help it achieve its original objectives.
Old: DreamWorks experienced its most prosperous period ever under its relationship with Paramount and also contributed its best and brightest marketing and development troops to Paramount (and there they have to stay). DreamWorks also nurtured its best development slate there (which also has to stay).
The bottom line: DreamWorks wants to pursue its dream and rid itself of its corporate angst. And no one -- new generation or old -- can predict where the new structure will take it.
© Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
There is a problem with the comment system, or you do not have javascript enabled.
 |
|
Sign up to the FREE daily Variety Asia e-zine:
Kaiju comeback
|
Variety Asia RSS
Kaiju Shakedown RSS