Spielberg Pays Bills for Ailing DreamWorks

Credit crunch forces director into personal bailout for studio
By Ambreen Ali,  Newser Staff
Posted Jan 15, 2009 10:51 AM CST
Spielberg Pays Bills for Ailing DreamWorks
DreamWorks and Paramount's "Transformers" is shown here. Dreamworks and Paramount amicably split last year, divvying up film projects they worked on together.   (DreamWorks)

(Newser) – Perhaps for the first time, Steven Spielberg is using personal funds to pay half of a $26.5 million bill his company, DreamWorks, owes ex-partner Paramount so it can keep 17 film projects under its wing. Due to cash shortages, the studio has already lost the rights to as many projects that the divorced companies had initially agreed to share, Variety reports.

The credit crunch has hit DreamWorks hard: Indian conglomerate Reliance—a key funder that’s footing the other half of the Paramount bill—has dropped its promised $550 million investment to $325 million. DreamWorks, through JP Morgan, was supposed to raise a matching $550 million, but it’s now aiming lower, and, Variety adds, it’s uncertain if and when JP Morgan’s loan will go through. (Read more Hollywood stories.)

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