Paramount Pictures secures financing from Chinese investors for film slate

Ryan FaughnderContact Reporter

Paramount Pictures, the Viacom Corp.-owned studio that has struggled at the box office for several years, is getting a financial boost from two Chinese media companies.

Shanghai Film Group and Huahua Media have agreed to co-finance the studio’s slate of films over the next three years, the companies said in a statement Thursday. Financial terms were not disclosed but the partnership will be worth as much as $1 billion in financing to the studio, according to a person briefed on the pact.

In addition, Shanghai Film Group and Huahua Media will open and jointly maintain an office on the Paramount lot in Los Angeles starting later this year.

The deal marks the latest move by Chinese companies to invest in Hollywood and comes nearly three months after Viacom’s board rejected a plan to sell a 49% stake in Paramount Pictures to China’s Dalian Wanda Group. Wanda subsequently signed a deal to invest an undisclosed amount in Sony Pictures movies. Wanda has also acquired Dick Clark Productions, Legendary Pictures and the AMC theater chain.

Other Chinese companies have been maneuvering to get a foothold in Hollywood.

Alibaba Pictures, the entertainment arm of Jack Ma’s e-commerce giant, recently announced a deal to co-produce and co-finance movies with Steven Spielberg’s entertainment company, Amblin Partners. Chinese technology giant Tencent and Hong Kong-based telecommunications firm PCCW last year agreed to invest in Burbank upstart studio STX Entertainment.

China’s Hollywood ambitions have raised red flags in Washington. Last year, 16 members of Congress signed a letter calling for increased scrutiny over China’s involvement in American films, citing “growing concerns” over Chinese efforts to exert “propaganda controls on American media.”

China’s domestic films are strictly censored, and top Chinese officials have expressed goals of promoting a positive image of China abroad.

Under a long-term strategic agreement, Paramount, Huahua and Shanghai Film Group said they would actively seek opportunities for co-productions, which exempt studios from China’s strict quota that limits the number of foreign movies allowed into the country. The two companies have previously invested in Paramount movies, including “xXx: Return of Xander Cage.”

“Shanghai Film Group’s long and successful history as a prolific studio, coupled with Huahua’s strong track record in the Chinese market and its growing reach globally, make this a natural and powerful move for Paramount,” Paramount Pictures Chief Executive Brad Grey said in a statement.



Add Comment

all comments

  Other news

more
Trash on the tracks

Trash on the tracks..

22-Apr, 20:18

Up to three trains a week arrive at the Zwentendorf plant. Each carries...

Arthur Collins charged over London nightclub 'acid attack'

Arthur Collins charged over London nightclub 'acid attack'..

23-Apr, 18:23

The boyfriend of The Only Way Is Essex star Ferne McCann has been charged...

Want Nintendo's NES Classic? Better hurry to a Best Buy tomorrow

Want Nintendo's NES Classic? Better hurry to a Best Buy tomorrow..

23-Apr, 19:24

The mini collector's edition NES. Purchases will be limited to one NES...

TOWIE’s Megan McKenna and Pete Wicks REUNITE as star launches brand new Essex restaurant MCK Grill

TOWIE’s Megan McKenna and Pete Wicks REUNITE as star launches brand new Essex restaurant MCK..

23-Apr, 15:18

But now it seems the former couple are attempting to put the past behind...

Father of Tennessee teen: She 'may not be exactly' the person she was prior to alleged abduction

Father of Tennessee teen: She 'may not be exactly' the person she was prior to alleged..

23-Apr, 15:02

The father of the Tennessee teen found more than a month after she was...

Iraqis haunted by war overwhelm mental health facilities

Iraqis haunted by war overwhelm mental health facilities..

10-Apr, 04:10

Six-year-old Mustafa suffers nightmares, cries at the sound of airplanes...

Samsung Galaxy S7: Cutting-Edge Smartphone for the Klutz in Us All

Samsung Galaxy S7: Cutting-Edge Smartphone for the Klutz in Us All..

07-Mar, 00:31

Good looks apparently run in the family. The latest progeny from...

Every Question Episode 3864

Every Question Episode 3864..

17-Feb, 22:28

The following Every Question Episode 3864 English Sub has been released....