Latest update December 15th, 2015 10:12 PM
Fosun and SFG Team Up to Establish A Film Investment Fund
SHANGHAI – July 29, China’s leading private investment group Fosun and Shanghai Film Group (SFG) announced to form a strategic partnership to establish a cultural industry investment fund.
The two companies will have extensive cooperation in film and TV content via acquisition, reorganization, joint investment, production, distribution, etc. The two are planning to introduce the local quality films and TV dramas to overseas market. They also look to invest and acquire cinema assets and explore a win-win model in projects like cultural tourism, production base, cultural and creative industry park, etc.
“We are optimistic about the prospect of China’s cultural industry. This partnership enable us tap into the film and TV industry. SFG’s expertise helps us select out the proper projects. Also, we establish multi-channel financing system for the industry,” said GUO Guangchang, President of Fosun International.
Founded in 1992, the Hong Kong listing company Fosun is heavily involved in insurance, industrial operations, investment and asset management. The company is dedicated to the investment model of “Combining China’s Growth Momentum with Global Resources”, striving to become a China expert with global capacity” thus says its website.
The company is confident about the future development of China’s film industry, with a total B.O. revenue of US$3.6 billion last year. Fosun has already stepped up its investments in this field. In June, Fosun has bought an additional 13.3% stake at $49 million from Bona Film Group, one of China’s leading film companies. Combined with the 7.5% stake purchased in 2013, it has become the second-largest shareholder of Bona. The company stated that the acquisition enable both parties integrate their resources to seize the opportunities brought by the rapid expansion of local film market as well as the increasing cooperation between China and the U.S.
Also in June, Fosun signed an investment agreement with Studio 8, a Hollywood film company founded by former president of Warner Bros Jeff Robinov. It’s worth noting that China’s top 5 private film company Huayi Brothers had also eyed on this deal for a long time. Fosun said in its statement that “the company will do distribution and the development tie-in products of movies produced by Studio 8 in mainland China, Hong Kong, Macau and Taiwan.” Fosun will also pack with Studio 8 in game development and even try to adapt the premium films or TV dramas into stage plays.
Meanwhile, under this agreement, Fosun also aims to introduce Hollywood’s advance film-making expertise, technologies as well as its highly-developed production and distribution system into China. In the future, this cooperation may give Studio 8 more Chinese elements in filming China-U.S. co-productions. It is also said that Studio 8 hopes to “build a global cultural platform covering movie, entertainment, culture consumption and media network with various means like M&A and equity investment.”
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