Can a Hollywood divorce lead to a monsoon wedding?

The principals of DreamWorks SKG, heading for a split from Viacom this year, are nearing a deal with an Indian conglomerate to create a new movie venture, report Lauren Schuker and Merissa Marr of the Wall Street Journal.

Under the plan being discussed, Reliance A.D.A. Group would invest $500 million to $600 million in the studio founded by Steven Spielberg, Jeffrey Katzenberg, and David Geffen in return for a big stake in the venture, the Journal says.

But the Los Angeles Times, following the Journal report, cites a person familiar with the situation who cautions that the talks are fluid and that an agreement is not imminent.

Indeed, Reliance has been talking to a number of Hollywood players, the Times reports.

The $1.6 billion sale of DreamWorks to Paramount began with much fanfare in 2005. But bad blood between the studio founders and Viacom, the corporate parent, built last year to the point where a split seemed inevitable. The breaking point appeared to be comments by Viacom's chief executive, Philippe Dauman, at a Goldman Sachs media conference in September. He told analysts and investors that a departure of the DreamWorks team would be "completely immaterial" to Viacom's financial position.

The contracts of Spielberg, Katzenberg, and Geffen allow them to leave this year. Stacey Snider, the chief executive of the studio, is expected to join them.

But the DreamWorks team could be exchanging one internal corporate feud for another. The Wall Street Journal notes that Anil Ambani, who controls wireless operator Reliance Communications and has ambitions in the entertainment business, has been battling his brother, Mukesh Ambani, the head of Reliance A.D.A., who was profiled by Sheelah Kolhatkar in the November issue of Condé Nast Portfolio.

Variety notes that under the deal with Viacom, Spielberg and company get to keep the DreamWorks name. It reports that the new venture will try to produce half a dozen live-action movies a year.