Ryan Kavanaugh and his recently launched film production company Proxima Media announced on Wednesday that they’ve received $250 million to produce up to 10 U.S. films in China.
The equity injection is part of a pact that Proxima has entered with China’s National Arts Studio, a physical studio boasting a 100-square-mile ranch an hour from Hong Kong, the company said. As part of the agreement, Proxima will acquire a large stake in the publicly traded Hong Kong studio, and take over management and building out of the studio, according to the parties.
“This truly will be the start of a new era,” Kavanaugh said in a statement. “Now we have both the right place, the right time, and the clear demand to create both a physical and virtual east-west content powerhouse.”
In addition to the stake in National Arts and the $250 million injection, the agreement will create state-of-the-art production facilities, a worldwide theme park, four-star lodging and a distinct travel experience, the companies said.
Proxima said it will also consult on all aspects of production, including refurbishing the existing studios and creating the production and post-production facility. The companies also plan eight technologically advanced sound stages.
“This is a chance to get a powerful footing with an accomplished partner with vision and potential, in one of the most lucrative and fast-growing regions of the world,” Kavanaugh said. “With their infrastructure and our knowledge base, this is a complementary alliance and a synergistic home run.”
In August, after Kavanaugh’s previous company, Relativity Media, filed for bankruptcy for the second time, the company and all of its assets were sold to UltraV Group, a joint venture of funds managed by Sound Point Capital Management and RMRM Holdings, for an undisclosed price.
China announced last month that the $9 billion Hong Kong film industry will be given greater access to the mainland Chinese movie market following a relaxation of rules that have kept their films and filmmakers separate.
“We are honored to partner with Proxima Media and its respected and visionary leader, Ryan Kavanaugh,” National Arts Chairman Sin Kwok-lam said in a statement. “We believe that by combining our resources we will shorten our learning curve and quickly bring our studio, parks hotels and related production facilities to the highest industry standards creating the largest and most global studio in existence today.”