One of the more unusual aspects of the deal Spielberg signed when he and his partners sold Dreamworks to Paramount was that when his contract ran out, not only could he leave, but he could take the Dreamworks name with him. As that contract ran out last autumn, Spielberg has been trying to raise funds to take the Dreamworks brand private again, a task that became a lot tougher when the credit markets collaped.
However it now looks like he’s got his money, with a scheme to raise $325 million in lender financing now oversubscribed. Dreamworks will also get the same amount from India’s Reliance Big Entertainment, and $175 million from its distribution partner, Disney. It’s difficult to imagine anyone other than Spielberg being able to raise that amount of cash for a small film studio against the background of a global recession (especially one that previously ran into trouble and was forced to sell to Paramount).
The money should cover up to three years of Dreamworks new movies, although they’ll be hoping to get a few more hits this time around and not have to sell out to a major studio again.