The line between Hollywood and Bollywood is quickly becoming blurred, as evidenced by Wednesday’s multi-million dollar deal between DreamWorks and Reliance ADA Group.

Steven Spielberg and his head of production, Stacey Snider, spearheaded a partnership with Reliance, reportedly worth more than $500 million. DreamWorks is looking to raise an additional $500 million in order to maintain autonomy and ownership of titles; the Hollywood company will also finance and own its properties, under terms of the deal.

Still missing from the deal is a distributor. Sources indicate that Par will likely fill those shoes, especially since Jeffrey Katzenberg and DreamWorks Animation are under contraction with the Indian distribution firm through 2012.

However, it is widely believed that Katzenberg will exercise DreamWorks Animation’s escape clause in 2010, costing Par $150 million in the payoff.

The one person missing from the deal is David Geffen, who figures not to play a role in the partnership.

A heavy-hitter in Indian media, Reliance is worth an estimated $100 billion. It owns India’s largest film production and processing company, radio stations, satellite TV channels, and various multiplexes in India and the United States.

Reliance is looking to play a larger role in the international market. At the most recent Cannes Film Festival, Reliance Big announced a slate of 69 Indian movies, ranging from $1 million to $40 million in production costs.

In 2006, Reliance splashed into Hollywood with a five-year, multi-picture deal with Hyde Park Entertainment, owned by former tennis great Ashok Amritraj. Among the movies spawned from that partnership is Street Fighter: The Legend of Chun-Li. Directed by Andrzej Bartkowiak, the movie is slated for a February release under the Fox franchise.

Shortly after that film, James Dodson’s The Other End of the Line is slated to be released by MGM.

Not to be outdone in the Indian youth market, Reliance’s Adlabs Films struck a deal with MTV Networks India in January 2007.

In March 2008, financier George Soros put his thumb in the Bollywood pie when he spent $100 million to purchase a 3% stake in Reliance Big Entertainment.

Later that month, Reliance purchased 250 screens in 28 North American cities, including New York, Los Angeles, Chicago and Washington, D.C., to operate a franchise of “Big Cinemas” that will feature movies produced in Bollywood and Hollywood.

Big Cinemas is a rather ambitious project, considering that Reliance owns 100 fewer screens in India. However, it does own a popular Imax theater in Mumbai. Furthermore, Reliance is on a shopping spree, aiming to expand its holdings to 300 screens before 2009.