New deal frees Spielberg from Paramount

LOS ANGELES, Sept. 21 (UPI) -- Paramount Pictures says Steven Spielberg's ties to the Hollywood studio are cut as the famed director has signed a new deal with an Indian film group.

A statement from Paramount said the studio allowed certain provisions in Spielberg's initial Paramount contract to be waived so the Dream Works official could sign a $1.2 billion deal with Reliance Big Entertainment, the Financial Times reported Saturday.

The Indian studio's purchase of Dream Works, which Spielberg co-founded with producer David Geffen, comes years after Paramount purchased the movie group for $1.6 billion.

While Spielberg and his fellow Dream Works minds will not produce movies through Reliance, he will remain entitled to profits from certain upcoming Paramount releases.

The Times said Spielberg will get 50 percent of the profits from Paramount projects in which he was involved, but that will not include the upcoming "Transformers 2.

While an unidentified source said Paramount's move has left some Dream Works officials confused, Paramount appeared conciliatory regarding Spielberg's departure, Variety reported.

"It has been an honor working closely with him and the DreamWorks team over the last three years, and we expect to continue our successful collaboration with Steven in the future," a studio statement said.