Steven Spielberg creating new movie studio

Busan, India -- U.S. movie director Steven Spielberg has signed a deal with an Indian film group to create a new studio, sources say
Unidentified sources in Los Angeles said Spielberg and Reliance Big Entertainment were finalizing an agreement potentially worth up to $1.5 billion to create the new Hollywood studio, the Times of India reported Saturday.

Currently, $700 million of the cinematic deal will be provided by the JPMorgan Chase financial group, while Reliance will pay an additional $550 million.

The deal will officially end the involvement of Spielberg and his Dreamworks studio with Paramount Pictures, The Hollywood Reporter said.

Under the new deal, Dreamworks Chief Executive Officer Stacey Snider will maintain the same position with the unnamed new studio.

The Reporter said the deal has been signed by Reliance Chief Executive Officer Anil Ambani and the studio is expected to officially start up in January.

Copyright 2008 by United Press International.