The sources have confirmed that Steven Spielberg and David Geffen would strike a deal with Reliance ADA Group to open a new studio.

According to the deal, the Reliance industries would invest about $500 million in the equity. Dream Works is feeling a need of additional $500 to complete the deal. This financial help can be provided by J.P. Morgan Chase & Co.  

The Reliance industry is doing its best to make its place in film industries. It is, specially, interested in Hollywood. The company has already signed agreement with eight Hollywood production houses. These prestigious production houses are run by A-class actors such as George Clooney's Smokehouse Productions, Tom Hanks' Playtone Productions and Brad Pitt's Plan B Entertainment.

Dream Works will find new distributors for six films after their deal with Reliance industries. Dream works can approach to Universal picture for partnership but Universal President Ron Meyer denied reports of partnership. He, however, showed keen interest in the offer by Dream works.

The firm is working on 12 new projects. These would be distributed by Paramount due to its close ties with Spielberg. The Paramount is expected to have 100 projects of various firms in its kitty.