Fosun Enters Hollywood by Investing in U.S. Film Studio
(Shanghai, 23 June 2014) Fosun International Limited (HKEx stock code: 00656, together with its subsidiaries, "Fosun"), announced that on 6 June 2014, Fosun signed a unit purchase agreement with Studio 8 from the U.S.. Fosun will invest in Studio 8.
Through this investment, Fosun plans to bring Hollywood's advanced and sophisticated film making expertise and technique, movie concept and technology, complete production and publication system to the China market, in order to drive the development of the Chinese film industry and worldwide film growth. Meanwhile, there will be more opportunities to share Chinese elements and stories in Studio 8's Chinese co-productions. Fosun will integrate the world leading film and entertainment resources to build a global culture platform covering movie, entertainment, culture consumption and media network with various means as M&A and equity investment.
Before founding Studio 8, a company specialized in movie and entertainment business, Mr. Jeff Robinov served as an executive at Warner Bros. Motion Pictures Group for 17 years, most recently as President of Warner Bros. Motion Pictures Group. Robinov helped oversee some of the most commercially successful and critically acclaimed films and franchises in recent memory including The Dark Knight trilogy (over $2.3 billion worldwide gross), The Hangover films (over $1.3 billion worldwide gross), Inception (over $825 million worldwide gross), Argo (over $230 million worldwide gross) which won the Oscar for best picture and Gravity which won seven Oscars, including best director. Studio 8 will keep Hollywood's successful business model, starting the business from film making, TV and derivate products. Eventually, the company will apply the content-based materials to the mobile and internet industry.
Mr. Jeff Robinov said, "We are happy to partner with Fosun, a well-respected Chinese company with global investment capabilities. Both China and the U.S. possess the film markets with the most influence and potential and we are excited to unite the markets, teams, technologies and respective advantages and work together on building a number of top-level films including co-production films between China and other countries."
Fosun believes that China has already become the world's second largest motion pictures market, and is expected to surpass the U.S. as the world's largest market in the next few years. With the trend of integrating the global culture and entertainment market, the consumption of movie and entertainment has grown significantly. This investment is a significant strategic footprint for Fosun in the global movie and entertainment industry. Guo Guangchang, Chairman of Fosun Group, said that," Mr. Jeff Robinov and Studio 8 are one of the best and experienced teams in Hollywood. Our partnership will combine the resources of China and Hollywood to build a global platform not only focusing on movie and entertainment investment, but also aiming to integrate our resources around the world."
In the future, Fosun will exercise significant influence over the distribution arrangements of movies produced by Studio 8 in the mainland of China, Hong Kong, Macau and Taiwan regions. Fosun hopes to bring the best Hollywood movies to the Chinese audience which will create the best possible viewing experience. Meanwhile, Fosun will also establish an investment, financing and business operation platform taking roots in China's culture consumption market and focusing on the global movie and culture industry.
Previously, Fosun has already made other investments in the culture industry, including Focus Media, Bona Film Group, etc.