LOS ANGELES - Paramount Pictures and DreamWorks say they are formally separating following DreamWorks’ deal to partner with Reliance Entertainment of India.

In a statement Sunday, the companies’ principals say DreamWorks will take the lead on some projects, which Paramount can choose to co-finance and co-distribute. Of the projects that remain at Paramount, the new company can co-finance those attached to DreamWorks’ star director Steven Spielberg.