Spielberg's Latest Cliffhanger: Financing

Plans for a reborn Dreamworks studio are hitting a roadblock in the credit markets

As Steven Spielberg is finding, even the world's most famous (and profitable) director can't seem to get a break from the sluggish credit markets. In September, it seemed that Spielberg and top lieutenant Stacey Snider, who ended their relationship with Viacom's (VIAB) Paramount Pictures, were set to start a reconstituted Dreamworks studio with India's giant telecommunications and media company Reliance Anil Dhirubhai Ambani Group in what their press release described as a $1.5 billion deal. Now that deal—at least at the outset—will probably be valued at only about $650 million because of recurring problems the two companies have been having putting together bank financing.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.