Sonali Krishna/TNN
Courtesy: Economic Times
Mumbai, May 12: In an audacious foray into Hollywood, Reliance Big Entertainment (RBEL), the entertainment arm of the Anil Dhirubhai Ambani Group (ADAG), is learnt to be in negotiations to produce three major movies featuring mainstream Hollywood stars.
A large delegation from ADAG is currently preparing for a major international announcement on May 19 at the Cannes film festival, where these plans will be unveiled. This will be the first time an Indian entertainment firm makes an entry into Hollywood.
According to ADAG insiders, RBEL could announce a slew of international films. The group is trying to rope in Hollywood actors like Tom Cruise, George Clooney and Will Smith. The buzz is that ADAG is also trying to line up Angelina Jolie for the announcements at Cannes.
The movies will target the global audience and will be mainstream Hollywood releases. When contacted, a Reliance-ADAG spokesperson denied the development. The estimated deal size is said to be in the region of $300 million, one of the biggest inked by an Indian entertainment company.
It is unclear whether the company is planning to ink deals with Hollywood studios or with the stars themselves. It is also not clear if the Hollywood stars will finally make an appearance at the ADAG event at the festival.
What is clear is that the ADAG delegation will throw light on its larger entertainment vision for global and Indian markets, which includes its multiplex operations in the West Coast of the US as well as the DTH, animation and film production plans.
Recently, RBEL, which runs cinemas in India through its Adlabs subsidiary, entered the US market under the brand name ‘BIG’. The company has acquired more than 200 theatres across 28 locations in North America, including New York, New Jersey, Atlanta, Detroit, Chicago, San Jose, Los Angeles, Washington DC and Seattle.
These will be used to screen Bollywood and other regional language movies from India and movies from other Asian countries. It has also bought a US-based theatre management company to operate the US chain and has set up a distribution company to license rights.
RBEL is focused on both international and domestic projects, and its vision is to become one of the major entertainment companies worldwide. The entry into mainstream Hollywood projects is in tandem with this vision.
For Hollywood actors and producers, partnering with an Indian entertainment company would ensure South Asian audiences, apart from having a strong producer and distributor who is able to explore new markets and concepts. The Hollywood plans are in addition to a slew of other announcements on its India plans (first reported in ET on May 10) which ADAG is expected to make in Cannes later this week.
In February, when George Soros invested $100 million in RBEL, the internet, media and entertainment arm of ADAG, for a 3% stake, valuing the company at $3 billion, the move took everyone by surprise. The primary reason was that most of the businesses - held under RBEL - were either at the planning stage or characterised by earnings potential rather than actual earnings.
However, going by the recent spate of activities and the number of acquisitions that RBEL has undertaken, the plans seems to be gaining momentum.
Three months after the last investment, RBEL has been in talks with private equity biggies like Kohlberg Kravis Roberts & Company (KKR), billionaire investor Carl Icahn, Japan’s Softbank and Abu Dhabi Investment Authority for selling 10% for a valuation of $5 billion.