Spielberg-Reliance deal signed - Paramount reaction is very gracefull

So at last the deal has been signed. Spielberg is officially exiting Paramount and setting up DreamWorks SKG as an independent entity with the backing of Anil Ambani's Reliance ADA Group. THR.com broke the news:

Steven Spielberg has finalized a deal to secure at least $500 million in funding from Mumbai-based Reliance Big Entertainment.

In a related transaction, JPMorgan Securities will lead a bank loan syndication giving Spielberg another $500 million or more for a total $1 billion-plus to re-create DreamWorks as a private company, allowing it to sever its current ties with Paramount. Documents were finalized Friday after representatives of the various parties reached a handshake agreement on deal terms Thursday night.

The pleasant surprise was how gracious Paramount was about Spielberg's exit:

In a surprise move, Paramount issued a statement saying that the departing DreamWorks principals were also free to take their employees with them. While the DreamWorks brass had exit clauses in their current contracts, they needed permission to bring other execs or staff along to a reconstituted DreamWorks.

"To facilitate a timely and smooth transition, Paramount has waived certain provisions from the original deal to clear the way for the DreamWorks principals and their employees to join their new company without delay," the studio said.

Spielberg, DreamWorks partner David Geffen and CEO Stacey Snider are expected to quickly tender their resignations from Paramount. A DreamWorks spokesman declined comment on the developments.

Paramount even issued a letter wishing the exiting team well. The studio has had time to prepare for this departure and plan its reaction. It may also be angling for a future distribution pact with the new DreamWorks. But I would like to believe that the good people at Paramount are sincere. However, others are already busy wooing Spielberg to distribute through them:

Next comes a distribution deal, which is why GE's Jeffrey Immelt and Universal's Ron Meyer were dining with Spielberg and Snider last Thursday and why NBC Universal boss Jeff Zucker spent the better part of that afternoon with Steven planning out the rebuild of the fire-ravaged Uni backlot. Given how Spielberg sees Universal as his professional home (he never moved his offices even after Paramount bought DreamWorks), I've always assumed he'd land there. Now, with Immelt and Zucker paying homage, it looks like another done deal no matter how much Geffen would dearly love to play one studio off of the other and mastermind a bidding war for Spielberg/Snider. And David himself? He keeps telling everyone that all he wants is to say goodbye to the movie biz.

The effectively reveres acquisition of DremWorks in 2005 - which infused new talent and vigor into the seemingly moribund Paramount - was what the studio needed and it is under Brad Gray's leadership much stronger as a result today. So much so that they can afford to see Spielberg leave.

Now the interesting thing will be to see what the Reliance and JP Morgan-backed DreamWorks does. Just don't expect Spielberg to start shooting a masala film with SRK next.