China's Recon Group Buys Majority Stake in Millennium Films for $100 Million

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China’s Recon Group has officially bought a majority stake in Avi Lerner‘s Millennium Films, TheWrap has learned.

The Chinese conglomerate purchased 51 percent of the film production company behind the “Expendables” franchise valued at $100 million, both Recon and Millennium announced on Thursday.

Millennium was founded by Avi Lerner and Trevor Short in 1996. It was reported earlier this month that the company was in talks to be acquired by Recon.

Also Read: China's Recon Group in Talks to Acquire 'Expendables' Producer Millennium Films (Report)

“We are excited about our new partnership with Recon Holding led by Tony” said Lerner and Short in the announcement. “China is emerging as the world’s largest market for premium filmed entertainment, and we see enormous value in placing the Chinese market at the forefront of our global strategy. Our films have experienced considerable success in China and in other markets around the world, and we feel there is significant value in partnering with an astute, experienced, and well-connected partner to help us execute our long-term strategy of making commercial movies for the global market place.”

Recon’s chairman Tony Xia has proven that he’s willing to spend money to crack western markets. While certainly not as far west as Hollywood, he recently dropped $109 million to buy soccer club Aston Villa. The team was previously part of Cleveland Browns owner Randy Lerner’s portfolio.

Millennium also produced “Olympus Has Fallen” and Jason Statham’s “The Mechanic,” the latter of which was a huge box office hit in China. A mega-star in the far east, Statham will lead upcoming Chinese-U.S. co-production “MEG,” which is slated for a March 2018 release.

Also Read: Mark Gill Out as Millennium Films President

According to its own website, the independent film company has more than 300 movies to its credit in two decades of existence. Millennium now produces, finances and handles international sales for five to eight star-driven movies per year, generally with budgets between $20 million and $80 million.

In January, it was announced Mark Gill, the former president of Millennium Films, stepped down.

Buying into Hollywood has been a big trend for top Chinese companies over the last few years, with the billions invested by Wang Jianlin’s Dalian Wanda Group leading the charge.

The deal is expected to close during Q2 of 2017. Millennium Films was advised by The Raine Group and Latham & Watkins LLP. Amir Malin of Qualia Capital also provided advice and counsel. Recon Holding was advised by China International Capital Corporation and David Eisman of Skadden, Arps, Slate, Meagher & Flom LLP.

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.”
Getty Images
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.
Getty Images
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.
Getty Images
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.
Getty Images
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.
Getty Images
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.
Getty Images

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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.

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12 Chinese-Owned Media Companies, From Dick Clark Productions to AMC (Photos)

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