DreamWorks Animation SKG Inc. today announced an agreement to form a joint venture with China Media Capital, with plans to include Shanghai Media Group and Shanghai Alliance Investment Ltd., to establish a transmedia family entertainment company.
Oriental DreamWorks will play to its strengths by creating Chinese animated and live action content, but it also will be creating for mobile, online, interactive games, consumer products, and even theme parks and live entertainment.
The Chinese companies will hold a majority stake of approximately 55 percent in Oriental DreamWorks, with DreamWorks Animation holding the remainder. The joint venture plans to launch business operations in Shanghai later this year using cash and intellectual property valued at $330 million.
“We are incredibly proud to establish Oriental DreamWorks alongside CMC, SMG and SAIL in this groundbreaking and historic alliance to create the leading Chinese-branded family entertainment company,” said DreamWorks Animation‘s CEO, Jeffrey Katzenberg. “Together with our partners in China, we look forward to building a first-of-its-kind enterprise to locally conceive, produce and distribute high-quality creative content and family entertainment experiences – not only for the people of China but also for related export markets.”
Ruigang Li, chairman of China Media Capital, said CMC and DreamWorks Animation shared a vision of building a world-class entertainment company. “By combining the expertise of CMC in investment and operation, SMG in media and entertainment management, SAIL in high-tech R&D, as well as DreamWorks Animation in creative processes, innovative technology and global network capabilities, Oriental DreamWorks will be in a unique position to create high-quality content and interactive entertainment products for China and international markets,” he said.
DreamWorks Animation’s Kung Fu Panda was the number one animated film upon its 2008 release into China, and Kung Fu Panda 2 became the highest-grossing animated film of all time in the region, grossing approximately $100 million.
China Media Capital describes itself as China’s first media sector focused fund dedicated to media and entertainment investments in China and internationally. The company’s portfolio includes a controlling stake in News Corporation’s China assets, including TV channels – Star (Xing Kong), Star (Xing Kong) International and Channel V (China) – as well as the Fortune Star movie library, which is the largest movie library across Asia.
Shanghai Media Group‘s comprehensive portfolio of media-related businesses includes television (14 analog channels, 15 digital channels), radio (11 frequencies), print media (9 newspapers and magazines), new media (IPTV, mobile TV and Internet TV), home shopping, content distribution, performing arts, education and talent management. In addition to being China’s leader in delivering content and services in the traditional media sector, SMG has the country’s largest TV shopping outlet and dominant IPTV operation.
Shanghai Alliance Investment is an investment arm of the Shanghai municipal government, with the mission to deliver value for its shareholders as well as make contributions to China’s development by providing resources to innovative technology companies. It is recognized as a preferred Chinese partner for leading international corporations.
Press release – http://tinyurl.com/6vy7z3q