Oh dear! It seems that DreamWorks Pictures is in a lot of trouble these days with the economy being in recession and the transition into Obama's Presidency still being days away.  Reliance Entertainment promised to invest $550 Millon in the American company when they first made a deal.

Now they have lowered their commitment to around $325 Million. Once Reliance takes over, the new DreamWorks still has to seek funding for about $225 Million within the next 7 years. It seems like everyone in the United States is feeling the economic troubles, especially the entertainment industries.

Since Americans have stopped buying just about everything except for absolute necessities, many companies have been forced to downsize, borrow, and merge with other companies to recoup the difference. For now it seems that Steven Spielberg is not giving up hope on DreamWorks Pictures, a company he created with good friends David Geffen and Jeffrey Katzenberg.

Hopefully the decision DreamWorks Pictures made with Reliance will prove to be a good move on their part and lead the India-based company into more recognition and fame in the future. It will be interesting to see how Dreamworks pulls out during this tough American economic time. 

The company has lost 17 major projects that they had helped in developing, approximately 17 in all, with Paramount since they can no longer afford to foot the bill as originally planned through their legal agreements. Director Steven Spielberg, who is one of the heads of the declining production company, is reaching into his own pockets along with India's very own Reliance Entertainment so they can come up with the money to pay some of the debts DreamWorks Pictures owes to Paramount. Hopefully things will work out.