LOS ANGELES (Reuters) – DreamWorks SKG, the movie company controlled by Steven Spielberg, and Universal Pictures on Friday severed their film distribution pact, sending DreamWorks into advanced talks with Disney where it expects to get more funds to spur production.

DreamWorks has produced movies such as classic “Saving Private Ryan” and action hit “Transformers,” but has been looking for cash since splitting off from Paramount Pictures last year and taking itself private with the backing of Indian media conglomerate Reliance ADA.

Universal, a unit of the NBC Universal media division of General Electric Co, said it broke off “several weeks” of talks on a distribution deal after the smaller DreamWorks “demanded material changes to previously agreed upon terms.”