Warner Bros., China Media Capital Unveil Joint Venture to Produce Chinese-Language Tentpoles
Sunday, September 20, 2015
(The Hollywood Reporter by Patrick Brzeski) – Headquartered in Hong Kong, with offices in Los Angeles and Beijing, the new Flagship Entertainment Group Ltd. will produce a slate of movies for global distribution, with the first titles released as soon as 2016.
Ahead of Chinese president Xi Jingping's visit to the United States this week, Warner Bros. announced a major agreement Sunday with China Media Capital (CMC), a giant investment fund backed by the Chinese government, to form a joint venture, Flagship Entertainment Group Limited. The new entity will develop, distribute and produce a slate of Chinese-language films, including global tent poles, for distribution in China and around the world. The first titles from the imprint could be released as soon as 2016.
The announcement clarifies unconfirmed reports from August, which said the two companies had been negotiating for months over a joint venture that would target China's booming film market, currently number two in the world and on track to surpass North America as the world's largest in less than three years.
Flagship Entertainment will be owned 51 percent by a consortium of Chinese investors led by CMC, with Hong Kong broadcaster TVB holding 10 percent within the group. Warner Bros. will own the remaining 49 percent. The venture will be headquartered in Hong Kong, with offices in Beijing and Los Angeles. Further financial details were not disclosed.
