The move, first reported by the Los Angeles Times, comes days after the actor was noisily ousted from his 14-year production deal at Paramount Pictures by Viacom Chairman Sumner Redstone.
Less cash for overhead
The deal will provide Mr. Cruise and his producing partner Paula Wagner with less than $3 million to cover overhead expenses, the report said. His current production deal with Paramount, which provided him with up to $10 million a year, expires Aug. 31. Representatives for Mr. Cruise could not be reached at press time.
Mr. Cruise and Ms. Wagner have said that they are in the midst of putting together $100 million from two hedge funds -- one based in Los Angeles, the other in New York -- that will enable the two to strike out on their own and produce their own films, with studios distributing them.
The sources of those two hedge funds have not yet been disclosed.