Paramount Inks Slate Financing, Strategic Partnership with China's Shanghai Film Group and Huahua Media

Paramount

Paramount Pictures has brought on Chinese film companies Shanghai Film Group and Huahua Media as part of a strategic agreement in which Shanghai Film Group and Huahua will co-finance the studio’s full slate of films for the next three years.

A source with knowledge of the deal told TheWrap the agreement could be worth as much as $1 billion in slate financing, and Shanghai Film Group and Huahua can fund 25 percent or more of the studio’s full slate.

Shanghai Film Group and Huahua will also establish offices on the Paramount lot as part of the deal, which was finalized when Paramount Chairman and CEO Brad Grey, Shanghai Film Group Chairman Ren Zhonglun, and Huahua Media Chairman Wang Kefei met in Shanghai in November. The three companies will actively seek opportunities to participate in co-production deals, according to a statement announcing the agreement.

Also Read: China's Huahua Media and Shanghai Film Group Join Paramount on 'XXX: Return of Xander Cage'

Earlier this week, Shanghai Film Group and Huahua joined Paramount as investors and Chinese marketing partners on “xXx: Return of Xander Cage,” which hits theaters this weekend. Huahua has invested in several other Paramount films, including “Transformers: Age of Extinction,” “Star Trek Beyond,” “Mission Impossible: Rogue Nation” and “Jack Reacher: Never Go Back,” in which it also partnered with Shanghai Film Group.

“Shanghai Film Group’s long and successful history as a prolific studio, coupled with Huahua’s strong track record in the Chinese market and its growing reach globally, make this a natural and powerful move for Paramount,” Grey said in the statement. “We look forward to working with these two highly-respected entertainment industry leaders, Chairman Ren and Chairman Wang, and their entire organizations in the years ahead.”

“SFG is very honored to work with Paramount, which has produced so many internationally acclaimed classics and boasts very strong worldwide distribution, and Huahua has always been our firm partner,” Ren said in the statement. “We look forward to working with Chairman Brad Grey and his team, with the hope this long-term and deep cooperation can help promote Chinese films worldwide and achieve a win-win situation.”

Also Read: China's Huahua Media, Shanghai Film Group Invest in 'Jack Reacher' Sequel

“Huahua was founded to bring the highest quality to the audiences that filmmaking had to offer,” Wang said in the statement. “For the past few years, we partnered with Shanghai Film Group to successfully bring great story telling to the Chinese audiences. Our initial projects with Brad Grey and his team at Paramount also proved successful. Today, I am delighted that our three companies have come together to devote our resources not only to serve our domestic viewers, but for audiences across the world.”

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

1 of 13

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.

View In Gallery