Sunday, October 20, 2019

WILL DREAMWORKS SURVIVE?

January 30, 2012 by · Leave a Comment 

The ability of DreamWorks to continue turning out costly productions may be tested in coming weeks as it exhausts its first round of financing, including its $325 million from partner Reliance Entertainment and a matching $325-million loan from J.P. Morgan Securities. According to the New York Times, while the original deal called for Reliance and Morgan to continue their funding, the dicey U.S. economy has forced DreamWorks to seek out additional funding elsewhere, a difficult task given the precarious condition of some investors and lenders. In a statement to the Times, DreamWorks and Reliance said, “Our relationship has always been structured to allow us to adapt to changing market conditions and to create the best chance for success for all parties involved.” But such an adaptation, the Times observed, citing people familiar with the situation, may require DreamWorks to reduce its slate of films or limit itself to “potentially less impressive projects.” Commented the newspaper: “Whether DreamWorks would even be interested in making lower-risk, lower-profile movies, however, is far from clear.”