Steven Spielberg’s DreamWorks Studios is preparing to receive a $200 million equity infusion from Participant Media and shift its distribution deal from Disney to the director’s longtime home at Universal Pictures, it was reported today.
Final details of the arrangement are still being ironed out, but the deal is expected to be wrapped up within days, bringing Spielberg’s operation a much-needed jump start, both economically and strategically, Daily Variety reported, quoting multiple sources familiar with the situation.
The transaction will bolster DreamWorks’ finances at a time when the continued commitment of its key equity investor, Reliance ADA Group of India, has come into question, the Daily reported. However, one source cautioned that Reliance is expected to remain an active investor under the new deal.
DreamWorks Studios is trying to reboot itself after a series of disappointing films. While he remains one of Hollywood’s top directors, Spielberg has told associates that he feels DreamWorks movies have not been a high priority for a Disney operation busy with releasing a string of blockbusters from its Marvel, Pixar and Lucasfilm units.
Next summer’s Spielberg-directed “The BFG” will be the final DreamWorks picture released by Disney, Variety reported.
