India's Reliance ADA Group is close to a deal with DreamWorks' chiefs Steven Spielberg and David Geffen to launch a new venture that would enable them to split with Paramount Pictures, according to a report in the Wall Street Journal. Click here to see article.

The Mumbai-based conglomerate would provide Spielberg and Geffen with equity of $500m-$600m towards setting up a film venture outside Paramount, which acquired DreamWorks in 2006.

It would also fit with the Indian corporate giant's stated aim of establishing a global entertainment empire. At Cannes,the company'srecently-launched Reliance Big Entertainment subsidiary said it would invest $1bn in film activities, which include providing development silos to the production companies of seven Hollywood stars, including George Clooney and Brad Pitt.

Reliance Big Entertainmentreplied 'no comment' when contacted by Screendaily on Wednesday.

According to the WSJ report, the new venture would also seek another $500m or so in debt financing to enable it to produce a slate of about six films a year. It would also choose a studio to distribute the films. Both Universal Pictures and Twentieth Century Fox were named as contenders.

Spielberg and Geffen began to signal last year that they might leaveParamount when their contracts expire. They would likely be allowed to keep using the DreamWorks SKG name, although Paramount parent Viacom would retain rights to the films they created during their time at the studio.

The $75bn Reliance ADA Group, headed by Anil Dhirubhai Ambani, is involved in telecoms, energy, financial and healthcare services, andunveiled its vertically-integrated film studio at Cannes.

In addition to production, the company is expanding its film distribution infrastructure, including exhibition, home video and online platforms. It's also investing in DTH satellite services and IPTV.

Billionaire investor George Soros acquired a 3% stake in the company in February for $100m.