Lionsgate and China's Hunan TV & Broadcast Intermediary have just made massive waves in the entertainment industry. The two entertainment giants have come together for an official multilayer deal and will co-finance, distribute, develop and produce new projects together.
This is poised to be an extremely lucrative deal for both sides- according to recent reports, Hunan would help to fund Lionsgate's productions through a three-year period, for an amount nearing $1.5 billion. Lionsgate is a major player in the United States, while Hunan TV is a massive presence in China, and the partnership between the two is bound to help both companies expand their marketshare. Especially considering Hollywood is courting Chinese markets more and more every year- especially when it comes to blockbuster films like Transformers, The Hunger Games and Insurgent. However, it was officially reported that The Hunger Games and the Divergent Series, two of Lionsgate's biggest franchises, would not be part of the deal with Hunan TV.
Lionsgate Chief Executive Officer Jon Feltheimer spoke on the new merger, saying: "We're delighted to expand our relationship with one of the pre-eminent entertainment brands in China to build our film and television presence in that territory as well as to explore opportunities around the world. This agreement reflects our strategy of teaming with entrepreneurial partners to expand our global operations in key markets while underscoring our commitment to a business model that mitigates risk."
Hunan TV & Broadcasting Chairman Qiu Yun Long echoed similar thoughts in the official press release, saying "We're thrilled to partner with Lionsgate, an innovative and forward-looking company that has emerged as a major creative force in the global marketplace,"
"We look forward to joining hands in creating a feature film pipeline filled with some of the most commercially exciting movies in the world as well as exploring other strategic opportunities throughout our complementary film and television businesses."
We'll see in the future just what kind of films come from this financial deal.
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