Creative Artists Agency was one of the first marquee Hollywood names to make a splash in China — and as the country’s movie market has grown, CAA has expanded that presence.
The agency announced Monday morning that it has teamed up with China’s CMC Capital Partners to form CAA China, a full-fledged media and entertainment platform. CMC has also made an investment in CAA, and CMC Chairman Li Ruigang will join CAA’s Board of Directors.
China has been a challenging place for Hollywood in recent months, as several high-profile deals have hit hurdles related to strict capital controls — or have even been killed outright, such as Dalian Wanda Group’s would-be $1 billion scoop of Dick Clark Productions. That could underscore the need for experienced operators and dealmaking in the space, which CAA and CMC both have. The companies also don’t expect politics to get in the way.
“On the CMC side, we have good access to the government and regulators,” Li told TheWrap. “I think the cultural and entertainment world will play a critical role in the two sides bilateral relations.”
CAA opened its China office in 2005 and currently counts more than two dozen employees in its Beijing office. The agency has been involved with every major Chinese co-production in the last decade and has either packaged, sold, or raised financing for more than 75 Chinese-language movies. CAA’s Global Film Finance & Sales Group has helped guide more $400 million in Chinese funds into English-language programming.
“We’re long-term players and we have tremendous confidence in CMC,” CAA President Richard Lovett told TheWrap. “There are more opportunities than ever before for Western clients in China, and Chinese clients with cross-border opportunities in the West.”
Jonah Greenberg, who will stay on as head of CAA’s China office, oversees its Chinese motion picture division, where the agency represents leading lights including “The Great Wall” director Zhang Yimou and “Rogue One: A Star Wars Story’s” Donnie Yen.
Roeg Sutherland, Co-Head of CAA’s Global Film Finance and Sales Group, will remain in charge of the agency’s Chinese film finance business. CAA China will staff up as it expands into more areas of entertainment and sports.
CAA is one of Hollywood’s leading agencies, representing numerous A-list entertainers, athletes and and other public figures, including former Vice President Joe Biden, a recent addition to the roster. CMC was founded in 2010 and has investments in a wide range of sports and entertainment properties, including IMAX China, Flagship, a joint venture studio with Warner Bros. and the Manchester City soccer team.
“For more than a decade, we have served as a vital bridge to and within the Chinese market, utilizing our deep experience and network to support the work of the region’s best artists and to develop opportunities within the market for international talent,” Lovett said in a statement. “CAA China will supercharge our efforts, from motion pictures, television, endorsements, and brand consulting to sports, live events, digital media, and beyond. CMC, under the leadership of Li Ruigang, has a remarkable record of success in the region, and we are confident that our partnership will yield tremendous results for our clients and future business partners in China.”
“We believe China and the US are the two biggest entertainment markets and play pivotal roles on the global landscape,” CMC Chairman Li said in the statement. “The partnership not only creates commercial and industry value, but also serves as an innovative force in the evolution of the Chinese media industry. CAA is a prominent institution in the US entertainment and sports sector, which has built its success on systematically and consistently enabling the success of their clients throughout the years. We are immensely excited about the potential possibilities of an enhanced China angle by CMC coupled with the experience and resources of CAA. CMC has been in a highly productive cooperation with CAA under the leadership of Richard Lovett, and we look forward to greater accomplishments in the future.”
12 Chinese-Owned Media Companies, From Dick Clark Productions to AMC (Photos)
A firehose of Chinese investment has been flowing into Hollywood for the last few years, as Middle Kingdom firms have scooped up production companies and theater chains by the billion. And while D.C. has finally taken notice -- and is asking the government to take a closer look at foreign ownership of American content companies -- Chinese firms have already accumulated a substantial portfolio of media and entertainment-related companies often at healthy premiums. And Hollywood isn’t ready to look that gift horse in the mouth.
AMC/Carmike/Legendary/Getty Images
AMC THEATRES Owner: Dalian Wanda Group
Wanda, a real estate and entertainment conglomerate owned by China’s richest man, Wang Jianlin, made its first Hollywood splash in 2012 when the company paid $2.6 billion for AMC Entertainment, the parent of AMC Theatres, the second-largest theater chain in the U.S.
AMC Theatres
Carmike Cinemas Owner: Dalian Wanda Group
Wanda-owned AMC paid $1.2 billion to acquire Carmike Cinemas in a deal that just closed in November. The combined chain will be America’s largest theatrical exhibitor, passing former No. 1 Regal Entertainment.
Mike Kalasnik
Legendary Entertainment Owner: Dalian Wanda Group
Wanda paid $3.5 billion for the “Jurassic World” production company in January, even though Legendary lost $500 million last year, according to a Chinese regulatory filing. However, plenty of Legendary’s high-octane action and fantasy flicks have been bigger hits in China than the U.S., such as “Warcraft.”
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Dick Clark Productions Owner: Dalian Wanda Group
Wanda spent $1 billion to acquire the producer of the Golden Globes, American Music Awards and “New Year’s Rockin’ Eve.” The deal marks Wanda’s first foray into television after spending billions on the big screen.
Dick Clark Productions
Voltage Pictures Owner: Anhui Xinke New Materials
Anhui Xinke, a copper processing company, bought an 80 percent stake in Voltage parent Midnight Entertainment for $351 million. Voltage is the production company behind Oscar-winning films including “The Hurt Locker” and “Dallas Buyers Club.”
Voltage
STX Entertainment Owner: Hony Capital, Tencent
Independent distributor STX was founded with investments from private equity giant TPG and Chinese firm Hony Capital. The company also has a co-financing deal with China’s Huayi Bros. Media, and this year secured a strategic investment from Tencent to expand into digital content, music and virtual reality.
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World Triathlon Corporation Owner: Dalian Wanda Group
Wanda paid $650 million last year for the company that organizes the Ironman Triathlon races, folding it into its new Wanda Sports division.
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IM Global Owner: Tang Media Partners
Tang Media Partners, which has offices in Shanghai and L.A., acquired a controlling stake in Stuart Ford’s film finance firm from Indian conglomerate Reliance in June. IM Global has financed or produced more than 30 Hollywood films, including Mel Gibson’s “Hacksaw Ridge.”
IM Global
Studio8 Owner: Fosun Group
Chinese conglomerate Fosun is the largest shareholder in former Warner Bros. chief Jeff Robinov’s production company, having invested $200 million in Studio8.
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Dichotomy Creative Group Owner: LeEco
Consumer tech company LeEco’s subsidiary Le Vision Pictures opened an L.A. office this year and hired former Paramount Pictures President Adam Goodman to run it and oversee a slate of English-language films. As part of the deal, LeEco acquired Goodman’s production company, Dichotomy.
Adam Goodman
Cirque du Soleil Owner: Fosun Group
It’s a Canadian circus, not a movie or TV studio, but Cirque du Soleil operates six Vegas shows, several tours and earned $845 million in revenue in 2014. Last year, TPG and Fosun acquired a majority stake in Cirque du Soleil for $1.5 billion.
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Riot Games Owner: Tencent
Tencent acquired a 93 percent stake in the video game publisher for $400 million in 2011 and acquired the remainder last December. Riot’s “League of Legends” is the most played PC game in the world.
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Firms from China have been scooping up production companies and theater chains by the billion in recent years
A firehose of Chinese investment has been flowing into Hollywood for the last few years, as Middle Kingdom firms have scooped up production companies and theater chains by the billion. And while D.C. has finally taken notice -- and is asking the government to take a closer look at foreign ownership of American content companies -- Chinese firms have already accumulated a substantial portfolio of media and entertainment-related companies often at healthy premiums. And Hollywood isn’t ready to look that gift horse in the mouth.