Directed by Steven Soderbergh and executive produced by Jerry Weintraub, Susan Ekins and Gregory Jacobs, the drama stars Douglas as Liberace and Damon as Scott Thorson, Liberace's younger live-in-lover. The script was written by Oscar nominee Richard LaGravense.
"From the inception of this project, we've had two priorities: getting it right creatively, and getting as many people as possible to see it," Soderbergh said in a statement. "HBO's fearless approach to original programming and their unparalleled ability to pull in viewers make them the perfect fit for us. Apart from my hair growing back, I couldn't be happier."
HBO Films president Len Amato said viewers are in for a shock.
"This is a story that's going to surprise a lot of people," Amato said. "It's funny, heartbreaking and always fascinating, and we are delighted that Jerry and Steven brought the film to HBO. With Steven at the helm, directing such accomplished actors as Michael Douglas and Matt Damon, this is a dream project for us."
The film starts production during the summer of 2012.