LOS ANGELES - HOLLYWOOD directing legend Steven Spielberg is leaving his longtime partner Paramount Pictures to form a new Hollywood-based film venture worth US$1.5 billion (S$2.2 billion) with India's Reliance ADA Group, Paramount announced Sunday.

Spielberg, director of such legendary works as Jaws, Raiders of the Lost Ark, ET the Extraterrestial and the Indiana Jones franchise, will hold a CEO position in the new venture alongside current Dreamworks' CEO and co-chairman Stacey Snider.

The deal was finalised by David Geffen, co-founder with Spielberg of the Dreamworks film studio, and Reliance CEO Anil Ambani, ranked the world's sixth-richest man in 2008 by Forbes Magazine.

Mr Geffen will not be joining the new company, but the majority of existing Dreamworks staff is expected to be offered positions at the new company, according to a statement from Paramount.

The JPMorgan Chase bank will provide up to US$700 million to finance the deal, with Reliance providing an additional US$550 million, reported The Times of India.

Paramount will have the option to co-finance and co-distribute feature films made by the new venture, said Paramount.

Also, Spielberg will continue to produce the Transformers franchise for Paramount, and will collaborate on three other Paramount movies, including the science-fiction remake When Worlds Collide. -- AFP