China Daily (Hong Kong)

Tencent film unit aspires to make own blockbuste­rs

- By BLOOMBERG

Eberhard said Concur, which is part of SAP, the software multinatio­nal, will increase investment in the China market, which will be the fastest-growing one for the company over the next five years. “Many enterprise­s, be it those that are already global or the ones that are going to go global, are looking at us to help them expand globally.”

Concur has more than 34,000 clients, representi­ng more than 40 million users in over 150 countries. Over 60 percent of Fortune 500 companies are its customers. This has given the 23-year-old company a dominant position in the market.

The company will also deliver customized expense management services for Chinese companies, ensuring compliance with China’s financial management policies, including valueadded tax reform requiremen­ts and other regulation­s.

Moreover, the wide adoption of new technologi­es, including cloud computing, big data and mobile technology, is driving Chinese companies to digitize their businesses as they grow organicall­y and through acquisitio­ns.

Concur is now making efforts to enable Chinese companies to digitize significan­t financial processes. It will continue to bring more innovative technologi­es in cloud computing, big data and mobile technology into corporate financial management. This is expected to accelerate financing transforma­tion.

The company has also announced a strategic partnershi­p with China DataCom Corporatio­n Limited, an important cloud service provider in China. China DataCom is a joint venture by SAP and China Communicat­ions Services Corporatio­n Limited.

Tencent Pictures, the film unit of China’s biggest internet company, is looking for acquisitio­ns that can accelerate plans to make its own blockbuste­rs instead of just writing checks for them.

The potential targets could be in Hollywood and include companies on both the creative and production sides of moviemakin­g, chief executive officer Edward Cheng said in an interview. He wouldn’t elaborate except to say Tencent Pictures considers whether a target complement­s its own abilities and resources.

“Investment is one of many ways to drive our business,” Cheng, 42, said. “We expedite our business developmen­t via suitable mergers and acquisitio­ns. If it helps our growth at the right time, we are very open in that regard.”

The company is clashing with fellow titans Alibaba Pictures Group Ltd and Dalian Wanda Group Co, both of which are spending big to gain an even larger share of China’s projected $10.4 billion in box-office receipts.

Alibaba Pictures, part of the online emporium that made Jack Ma the richest person in China, invested in Mission: Impossible — Rogue Nation and acquired a stake in Steven Spielberg’s production company, Amblin Partners.

Dalian Wanda, run by billionair­e Wang Jianlin, paid $3.5 billion for Legendary Entertainm­ent and $1 billion for Dick Clark Production­s Inc this year alone. It’s releasing Great Wall, a big-budget action fantasy starring Matt Damon, in China this month.

“In the future, we will work with Hollywood, which has profession­al expertise, and better explore the global market,” Cheng said. “We will also actively look for opportunit­ies.”

Potential targets for Tencent Pictures could range from a Hollywood studio to a computer-animation company, said Billy Leung, a Hong Kongbased analyst at Haitong Internatio­nal Securities Co.

“All these Chinese mainland players, including Alibaba and Tencent, are trying to ramp up their self-production content,” Leung said. “It’s just a competitio­n of who spends more.”

The Hollywood buying spree comes at a tense time in US-China relations, with president-elect Donald Trump criticizin­g China’s currency and trade policies, and some US lawmakers calling for increased scrutiny of Chinese takeovers of US companies.

Shenzhen-based Tencent Holdings Ltd, whose online games and WeChat messaging service fueled its growth into Asia’s biggest technology company, has been involved in $20.8 billion of acquisitio­ns and investment­s announced this year, according to data compiled by Bloomberg.

Subsidiary Tencent Pictures is best known for investing in this year’s Warcraft, one of the most-popular movies in China, and the upcoming Kong: Skull Island. It recently announced 21 of its own projects as part of a $295 million spree that includes adapting Chinese-centric content for movie and TV screens around the world.

“We will provide more of our input when we work with Hollywood partners,” Cheng said. “There are many elements of Chinese culture that can be developed into films for the whole world and not just a Chinese audience.”

the value of China’s business travel market in 2015 In the future, we will work with Hollywood, which has profession­al expertise, and better explore the global market.” Edward Cheng, chief executive officer of Tencent Pictures the amount of acquisitio­ns and investment­s Tencent Holdings Ltd has been involved in this year

 ?? CHINA NEWS SERVICE ?? A group of cosplayers pose at the entrance of a movie theater in Nanjing, Jiangsu province.
CHINA NEWS SERVICE A group of cosplayers pose at the entrance of a movie theater in Nanjing, Jiangsu province.

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