Paramount China Partner Huahua Insists $1 Billion Slate Deal Is 'Progressing as Planned'

After a planned acquisition by Oriental Times Media was held up by regulatory issues, China’s Huahua Media said Monday that the $1 billion deal with Shanghai Film Group to finance Paramount Pictures movie slate is “progressing as planned.”

Last week, TheWrap exclusively reported that Oriental Times’ plan to acquire Huahua for about $158 million was delayed after the China Securities Regulatory Commission decided not to give the deal its blessing.

An individual with knowledge of the deal told TheWrap its postponement or failure could threaten the Paramount slate financing arrangement, announced in February, which would have the two Chinese companies fund 25 percent or more of the studio’s entire slate.

Also Read: Paramount Slate Deal Threatened by Delayed China Acquisition (Exclusive)

In a statement provided to TheWrap, China’s Oriental Times Media Corporation said it has agreed to a multi-channeled joint venture with state-owned China Huarong Asset Management Company, which specialized in distressed debt, to invest in TV programs, cultural tourism and other entertainment areas. The statement also said that OTMC Chairman Peng Peng and Huahua CEO Wang Kefei recently met at Huahua’s headquarters, where the two discussed the “great faith in their long-term relationship.” Both executives reiterated enhanced plans to work together, but as distinct companies.

“OTMC and Huahua Media are heading towards the same goals, we will share the resources at hand with each other and maintain a close working relationship going forward,” Peng said in the statement. “Huahua‘s oversea resources and business development ability is widely recognized by our industry. We together will combine both companies strengths and stay as one to build a firm base for the future development.”

In the statement, Wang also insisted that the slate financing deal is still on despite the regulatory hiccup. China’s increasingly strict capital controls have tripped up other Hollywood deals, most notably Dalian Wanda’s failed purchase of Dick Clark Productions.

Also Read: Forget Trump - It's Chinese Regulators Who Are Putting Squeeze on China's Hollywood Deals

“In the past year, under the leadership of our chairman and founder Mr. Kenneth Huang, Huahua has achieved success with the great box office performance of ‘Star Trek Beyond,’ ‘Arrival,’ ‘xXx: Return of Xander Cage,’ and has become the exclusive partner on ‘Transformers: The Last Knight,” Wang said in a statement.

“Additionally, the three-year slate deal with Paramount and other solid projects are progressing as planned. Huahua has an abundance of overseas film and TV resources with major studios, as well as independent production houses, from established IP’s to fresh original content. This is of the highest accordance with the strategic plan of OTMC, and from their series of business plans, we can see its strengths and positive market outlook. Huahua will give its full support to the strategy by OTMC.”

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.
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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