Dreamworks Back in Business After New Funding

4 months ago 19th Jul 12:00

Steven Spielberg's DreamWorks Studios is to restart production on a host of new movies after landing a $825 million ($550 million) cash injection to fund future ventures.

The studio's future looked bleak after it ended its partnership with Hollywood giant Paramount in 2008, which left it owing the company around $30 million (£20 million) for the rights to a number of upcoming projects.

Spielberg, who is a partner in DreamWorks Studios, was forced to use $13 million (£8.7 million) of his own money so the studio could keep the catalogue of movies it had in the works.

But after a string of lucrative backers, including Indian conglomerate Reliance and a new distribution deal with Disney, DreamWorks is back in business.

The Walt Disney Company, Disney will handle marketing and distribution of the studio's films around the world, except for India where Reliance subsidiary Reliance Big Entertainment will retain distribution rights.

In a statement, the company's partners explain, "With this financing, DreamWorks will eventually make five to six films per year. DreamWorks anticipates starting its first film for the new studio later this year. They have been actively acquiring properties and developing projects for release in 2010."

"The Walt Disney Company, Disney will handle marketing and distribution of the studio's films around the world, except for India where Reliance subsidiary Reliance Big Entertainment will retain distribution rights."

DreamWorks Biggest hits include Shrek 2, Dreamgirls, Kung Fu Panda and Madagascar.