Chinese investors sign DreamWorks JV
Media fund China Media Capital, investment company Shanghai Alliance Investment Co and media conglomerate Shanghai Media Group have established a joint venture with American film studio DreamWorks.
Known as Oriental DreamWorks, the new China-focused family entertainment company will be 55%-owned by its Chinese backers, while DreamWorks and DreamWorks Animation (DWA) will hold the remaining share capital. Dreamworks Animation is the studio responsible for movies including "Shrek" and "Kung Fu Panda".
It was reported last November that the JV members would collectively invest $2 billion into the venture over a period of five years. Dreamworks' CEO Jeffrey Katzenberg was in China late last year to discuss the studio's launch with government authorities.
The agreement, which was signed at a ceremony at the Shanghai Xuhui Riverside Planning Exhibition Hall, sees Oriental DreamWorks initially capitalized with cash and intellectual property valued at $330 million. The business, one of the largest international investment projects in China, will engage in the development and production of original Chinese animated and live action content and pursue opportunities in the areas of live entertainment, theme parks, mobile, online, interactive games and consumer products.
Oriental DreamWorks' backers have pledged to develop an integrated cultural and entertainment tourist destination in Shanghai, to be known as the DreamCenter. Following an investment of RMB20 billion ($3 billion), the center will be constructed in the waterfront area of Shanghai's Xuhui district and will incorporate theaters, cinemas, creative enterprises, restaurants and commercial facilities.
Law firm Paul, Weiss advised DWA on the joint venture, with the team including corporate partner Jeanette Chan, associate Peter Davies, former associate David K Lee, China law consultant Yuanyuan Zhou and paralegal Bianca Ip.
The JV is the latest tie-up between Hollywood, China and private equity. Last year, Hollywood entertainment company Relativity Media teamed with SAIF Partners and IDG China Media to launch a $100 million fund that produces and distributes China-focused film content and releases it to global moviegoers. The films' production and distribution are processed through SkyLand, which was formerly SAIF Partners and IDG China Media's entertainment arm but is now owned by Relativity.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.