China's Tang Media Partners acquires US-based IM Global

Financial terms weren't disclosed but the deal reportedly valued the firm at $200 million. IM Global's CEO Stuart Ford and Reliance remain significant minority shareholders of the company, according to a Variety story posted on IM Global's website. Reliance invested in the Hollywood studio in 2010 and previously controlled about 70% of the company.

As part of the transaction, IM Global, Tang Media and Reliance have partnered with Chinese social media giant Tencent Holdings to launch a new TV joint venture to produce and distribute TV content.

Tang Media Partners, based in Los Angeles and Shanghai, was founded by Donald Tang, previously chairman and CEO of Bear Stearns Asia. The firm focuses on developing and financing the production and distribution of entertainment content between China and Hollywood. The company is backed by Tencent, Huayi Brothers, Sequoia Capital and CMC Capital Partners.

Driven by rising disposable incomes and rapid adoption of handheld devices, Chinese strategic and financial investors are looking to invest in the media value chain from origination to distribution. Earlier this year, Dalian Wanda paid $3.5 billion for Legendary Entertainment, the studio responsible for the Batman and Jurassic World franchises. 

Private equity firms including Hony Capital, CMC, FountainVest Partners and Fosun International have all participated in Sino-US media investments intending to leverage their knowledge and networks in China. Hony introduced STX Entertainment - a greenfield Hollywood venture it is backing alongside other investors - to Huayi, resulting in a three-year partnership that will see Huayi co-fund, co-produce and co-distribute almost all of STX's movies through 2017.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Media
• China
• Media
• Tencent
• USA