Fosun International to invest in Studio 8

By Huang Ying (China Daily) Updated: 2014-06-24 07:07

Fosun International Ltd announced on Monday that it is investing in a Hollywood film company founded by former president of US film company Warner Bros Entertainment Inc, to tap the burgeoning film market in China.

It signed an agreement to invest in Jeff Robinov's Studio 8 on June 6, the company said in a statement, but did not disclose the investment figures and further details.

Robinov, who served as president of Warner Bros Pictures Group from 2007 to 2013, stepped down from his post last June. During his time in Warner Bros, he oversaw successful big-budget blockbusters such as The Dark Knight trilogy, Inception, and Oscar-winning movies Gravity and Argo, said the statement.

Fosun International will play a significant role in distributing all movie productions by Studio 8 in the China region, according to the statement.

Huayi Brothers Media Corp, one of China's leading film production companies, announced in March that it will join other financiers to invest $120 million to $150 million in Studio 8.

Huayi Brothers will be in charge of the distribution business of all the films produced by Studio 8 in the China region, once it becomes a shareholder of the joint venture.

In response to Fosun's investment in Studio 8, Huayi Brothers said in an email to China Daily that it is still in negotiations with Studio 8 about the details of the deal, and the final investment amount has not been decided yet.

Huayi Brothers plans to be the largest investor from the Chinese film industry, the company said in the e-mail.

China has surpassed Japan to become the second-largest film market globally, and is expected to replace the United States as the largest film market in the world in the next few years. The investment is an important strategic move for Fosun in the global film and entertainment industry, amid the rising trend of integration among global players in the sector, said the Chinese company in the statement.

Fosun International, a Hong Kong-listed Chinese conglomerate, has a diversified portfolio involving industries including real estate, pharmaceuticals, mining and retail.

As China's biggest private conglomerate, Fosun has been active in overseas acquisitions in recent years. For example, it bought a controlling stake in Portugal's largest insurance group Caixa Seguros for 1 billion euros ($1.36 billion) earlier this year. It also paid $725 million for One Chase Manhattan Plaza in New York last year.

"As Fosun International is more of a company outside the film industry, its considerations in such an investment deal would be less than that of Huayi Brothers, making the negotiations achieve faster progress," said Peng Kan, research and development director of Legend Media, a Beijing-based consultancy.

Fosun's latest film and entertainment-related investments include the purchasing of a 6.4 percent stake in Bona Film Group last year.