China’s Fosun to invest in Hollywood movie studio

The studio was founded by Jeff Robinov, a former executive at Warner Bros. It will develop film and television projects and related products, as well as content-based materials for mobile and internet platforms.

Studio 8 is seeking to raise $250 million in equity and another $250-$300 million of debt, The Wall Street Journal reported.

Upon completion of the deal, Fosun will exercise significant influence over the distribution of Studio 8 movies in mainland China, Hong Kong, Macau and Taiwan, according to a regulatory filing. Two parties also plan to co-produce films between China and other countries.

"The company is optimistic about the future prospects of the Chinese film industry," Fosun said.

The conglomerate, which previously invested in domestic distributor Bona Film Group, plans to bring advanced film-making expertise, movie concepts and technology from Hollywood to China.

China is now the world's second-largest cinema market and expected to take top spot from the US over the next few years. A number of Chinese investors and Hollywood producers have formed partnerships in order to leverage this growth.

Last month, FountainVest Partners and CMC Capital Partners paid $80 million for a 20% stake in movie theater operator IMAX's China business, with an objective to grow the business and ultimately take it public. In March, Hony Capital and TPG Capital's growth equity arm entered into a partnership with two Hollywood producers to set up a film studio. They plan to invest more than $1 billion film productions over the next five years.

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