Lionsgate Secures $375 Million in Film Financing From China's Hunan TV
The mini-studio is to unveil a $1.5 billion, three-year film production and distribution pact on March 18 in Changsha.
Lionsgate is set to unveil a three-year deal with Hunan TV & Broadcast Intermediary Co. that includes $375 million in film financing, The Hollywood Reporter confirmed on Thursday.
The agreement, which gets Hunan TV into the U.S. market through Lionsgate, includes film production and distribution, and will be unveiled on March 18 in Changsha.
Stroock & Stroock & Lavan partner Schuyler Moore represented Hunan in the deal with Lionsgate. The Asian investment is expected to account for 25 percent of the film production costs incurred by the mini-studio in the next three years, with total budgets to run to $1.5 billion.
The investment includes cooperation between Hunan and Lionsgate for Chinese co-productions and distribution of Hunan's Chinese language films outside the U.S. market.
Lionsgate last year partnered with Chinese e-commerce giant Alibaba to launch a streaming service in China to distribute titles like Divergent and The Twilight Saga: Eclipse, and TV shows like Mad Men, Weeds and The Royals.