Reports: DreamWorks SKG talking to investors to go it alone

A major entertainment company in India is among the potential investors in DreamWorks, the movie studio founded in 1994 by Steven Spielberg, David Geffen and Jeffrey Katzenberg, the Los Angeles Times reported.

However, no deal was imminent, the Times said, citing an unnamed person familiar with the situation who was not authorized to talk publicly and spoke on condition of anonymity.

DreamWorks SKG spokesman Chip Sullivan did not immediately return a call from The Associated Press seeking comment.

The Wall Street Journal reported that DreamWorks SKG was close to a deal with India's Reliance ADA Group to invest $500 million to $600 million in the studio.

DreamWorks SKG is trying to raise about $1 billion to break from Viacom and its movie studio, Paramount Pictures, the Times reported.

Viacom bought DreamWorks SKG in 2006 for $1.6 billion, but the relationship has declined despite hits such as "Transformers" and "Dreamgirls."

Viacom CEO Philippe Dauman said last year his company was planning for Spielberg's possible departure amid reports that the Academy Award-winning director was unhappy at Paramount.

The personal contracts that Geffen and Spielberg signed as part of Viacom's acquisition of DreamWorks expire at the end of 2008. Katzenberg now heads DreamWorks Animation SKG Inc., a separate public company.

Spielberg, Katzenberg and Geffen founded DreamWorks SKG as a private company.