• Los Angeles Times, Tuesday, February 10, 2009 10:30 AM

Walt Disney Co. will put up hundreds of millions of dollars for film print and advertising costs and will share its valuable pay television slots with Steven Spielberg's DreamWorks studio under a deal hammered out between the two Hollywood blockbuster-makers Monday. Disney's $175-million outlay will be a loan rather than an equity investment, sources tell Claudia Eller.

DreamWorks needs the cash to get its slate of movies rolling, but it can't access Disney's funds until Spielberg raises $325 million in debt financing, which will trigger a matching equity investment by his Indian partner, Reliance Entertainment.

Disney's distribution agreement calls for DreamWorks to deliver up to 30 movies. DreamWorks hopes to make up to six films a year for Disney's Touchstone Films label. Disney will market and release the movies globally except for India, where Mumbai-based Reliance retains distribution rights.

Read the whole story at Los Angeles Times »