Steven Spielberg Gets Funds to Start Up New Studio

Steven Spielberg and business partner Stacey Snider said Monday that their new film company, DreamWorks Studios, has completed its initial financing and has $825 million available to make up to 21 movies over the next four years.

The announcement came months later than expected as DreamWorks struggled to raise funding it needed to launch a new venture with Indian conglomerate Reliance ADA Group.

DreamWorks and financing partner J.P. Morgan Chase raised $325 million in debt financing, a figure being matched with equity by Reliance. Walt Disney Co., which will distribute the company's films, is contributing a loan for another $175 million.

Mr. Spielberg's battle to fund his new venture shows the challenges that even top Hollywood talents are facing. The billions of dollars that Wall Street poured into the film industry have dried up. "The past year was like balancing ourselves on a sea of rolling logs," Mr. Spielberg said of the process. "Thankfully, no one fell in."


Film Business, Hollywood

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