China Media Capital (CMC) chairman Li Ruigang (黎瑞剛) is leading a consortium that will establish a movie production and distribution joint venture with Warner Brothers Entertainment.
The venture, which will be headquartered in Hong Kong, will seek to tap into both Chinese and English movie markets, the Hong Kong Economic Journal reported.
Televisions Broadcasts Ltd. (TVB, 00511.HK), in which Li has some stake, will hold 10 percent of the 51-percent interest that CMC will control in the joint venture.
Warner Brothers will have 49 percent stake in the entity, which will be known as Flagship Entertainment.
The joint venture company, which is expected to invest US$300 million in the first phase and US$1 billion in total, will set up branch offices in Beijing and Los Angeles.
The company aims to release its first movie next year.
The joint venture will leverage filming and movie production talents in Hong Kong, Li said, while also pointing out the city’s advantages in financial resources and legal framework.
TVB chairman Charles Chan Kwok-keung said the partnership will open up an array of business opportunities in the mainland China and overseas movie markets.
“We trust the joint venture will help us look for new, creative ideas and bring our content to the next level. The partnership with CMC and Warner Brothers will open a lot of doors in the mainland and overseas film markets,” Chan said.
“Hong Kong holds a unique position in bridging the Chinese mainland audiences with Hollywood studios,” he said. “TVB, as the leading broadcaster in Hong Kong, has a unique advantage because of its many popular artistes and wide range of promotion platforms.”
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