Beijing-based Huayi Brothers Media Corporation is investing $130m in a wholly-owned subsidiary in Los Angeles.
In a statement to the Shenzhen Stock Exchange, Huayi Brothers said the new company would handle investment, production, distribution and marketing of films and TV content. It will also be involved in mergers and acquisitions of overseas companies.
Huayi Brothers added that the subsidiary would contribute to the company’s global expansion, help grow its domestic (ie Chinese) business and increase its overall revenue. The investment is subject to regulatory approvals.
The news comes shortly after Huayi Brothers apparently withdrew from a deal to invest $120m in Jeff Robinov’s Studio 8. China’s Fosun International later stepped up with $200m to finance the fledging studio, which recently also closed a financing and distribution deal with Sony.
However, Huayi Brothers says it has not ended the talks and may still be involved in a distribution capacity with Studio 8.
The Beijing-based studio also has a distribution and co-production partnership with QED, which kicked off with Fury, starring Brad Pitt, and is also planning to release Lionsgate’s Mortdecai, starring Johnny Depp, and John Wick, with Keanu Reeves, next year.
At Cannes this year, IM Global announced that its Anthem division would be handling international sales on Huayi Brothers’ Chinese-language films. Upcoming titles include Pang Ho-cheung’s Women Who Flirt, Gu Changwei’s Love On The Cloud and Alex Law and Mabel Cheung’s A Tale Of Three Cities.