Lionsgate Nearing $1.5 Billion Deal With China’s Hunan TV

Agreement would cover film and television initiatives over a three-year period

Last Updated: January 28, 2015 @ 10:05 AM

Lionsgate and Hunan TV are looking to go into business with each other.

The “Hunger Games” producer is in advanced discussions with China’s Hunan TV & Broadcast Intermediary Co. Ltd. for a deal that has a potential value of $1.5 billion, an individual with knowledge of the negotiations told TheWrap on Wednesday.

The agreement would cover a number of strategic initiatives, including film financing, film distribution, local production in China and a number of television initiatives over a three-year period.

The $1.5 billion represents production costs that Lionsgate would already have been spending over the next three years. However, if the deal goes through, Hunan would also contribute to the initiatives.

This isn’t the first time that a Chinese firm has looked towards Lionsgate. As reported in December, Beijing’s Dalian Wanda Group Co. engaged in talks to buy a controlling stake in the company, though Dalian CEO Wang Jialin admitted at the time that the talks, which were in a preliminary stage, might ultimately not go anywhere.