Aug. 7 (Bloomberg) -- Steven Spielberg's DreamWorks SKG is nearing an agreement for a $550 million investment from Indian billionaire Anil Ambani, allowing the film studio to split from Viacom Inc.'s Paramount, according to a person with knowledge of the negotiations.

A deal may be reached as soon as next week, said the person, who declined to be identified because the agreement isn't final. The studio will borrow another $400 million and no additional outside equity will be needed, the person said.

The funding from Reliance Anil Dhirubhai Ambani Group would give DreamWorks co-founders Spielberg, Jeffrey Katzenberg and David Geffen the backing needed to leave Viacom by early November. The partners have clashed with Paramount Chief Executive Officer Brad Grey since selling the studio to Viacom for $1.6 billion in 2006.

Kelly McAndrew, a spokeswoman for New York-based Viacom, declined to comment. Paramount spokeswoman Patti Rockenwagner didn't return messages seeking comment. Dreamworks spokesman Chip Sullivan said the studio had no comment.

``We have no comment,'' Amit Khanna, chairman of Reliance Entertainment Pvt. said by telephone from Mumbai. ``Nothing at all at the moment.''

Spielberg and Stacey Snider, DreamWorks SKG's chief executive officer, can leave Paramount 60 days after Geffen resigns at the end of August, the person said. A new distributor, possibly General Electric Co.'s Universal Pictures, will release films from DreamWorks, the person said.

Movies that Spielberg already is developing at Viacom will remain at Paramount under pre-negotiated terms that compensate the director for each project, the person said.

Katzenberg is CEO of publicly held DreamWorks Animation SKG Inc., a separate company whose distribution agreement with Paramount wouldn't be affected by a split between Viacom and DreamWorks SKG.

To contact the reporter on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net

Last Updated: August 8, 2008 01:08 EDT