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Spielberg, Reliance Still Talking

Representatives for Steven Spielberg and Indian conglomerate Reliance are continuing to speak daily about the terns of a proposed $1.5million deal that would create a privately-owned DreamWorks and produce some 30 films over the next five years, according to THE HOLLYWOOD REPORTER.

Reliance execs are expected to hold sit-down talks with Spielberg reps in New York or Los Angeles soon, although things are reportedly going so well they might hold off meeting face-to-face until a meeting to close the deal later this summer. The business plan under discussion involves Spielberg and top DreamWorks execs creating a new company financed with about $550 million in equity funding from Reliance, a senior debt facility and possibly additional equity from whichever studio ends up as the theatrical distributor.

"Things are going well, and God willing we'll get there," said Schuyler Moore, a Stroock & Stroock & Lavan attorney representing Reliance in the DreamWorks talks to the REPORTER.

Potential studios vying for a distribution deal include Universal, Fox, Disney and Paramount. Paramount is the current parent company of DreamWorks and will continue to distribute any DreamWorks films through 2008. After that, a contract provision allows Spielberg to opt out of his Paramount deal and take DreamWorks chairman David Geffen and DreamWorks CEO Stacey Snider with him, along with the DreamWorks name.

Actually, the name is controlled by DreamWorks Animation, a separate publicly-traded company, but it is assumed Spielberg would be granted the right to use the name.

Spielberg still has the option to simply enter into a new distribution deal at a different major than Paramount and skip the step of setting up an entirely new company. But Spielberg reportedly wants to have sole ownership on his movies and will likely seal the deal with Reliance by summer's end.

Reliance is the only prospective equity partner Spielberg has entered into advanced talks with. Terms of the arrangement will be altered between now and closing, but principals at the conglomerate appear committed to working out a deal.

A DreamWorks spokesman declined comment to the REPORTER.

In other Reliance news, the company, which is based in Mumbai and controlled by Indian businessman Anil Ambani, has been on the prowl for funding for its own production. The conglomerate has a diversified portfolio which includes Reliance Big Ent., which has several nonexclusive production pacts with Hollywood film labels operated by talent.

This talent includes marquee names Tom Hanks, Brad Pitt, George Clooney and other CAA clients, who first brought Reliance's DreamWorks interest to Spielberg. Geffen has been a strong supporter of recreating DreamWorks as an independent production company, with entertainment attorney Skip Brittenham an essential player in creating the business plan.

"David wants to know that everything is, if not closed, then locked up by the end of summer," a well-placed source told the REPORTER.

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