Legendary Pictures gains China link
Hong Kong firm buys 3.3% of the Hollywood movie financing and production company.
Hong Kong movie company Orange Sky Golden Harvest Entertainment has made a minority investment of $25 million in Legendary Pictures in a deal that will enable the Hollywood film financing and production company to move into the Chinese market.
Founded in 1970, Orange Sky has produced and financed more than 600 movies and operates 29 multiplexes with 229 screens in China, Hong Kong, Taiwan and Singapore.
In a regulatory filing, the company said it made the strategic alliance, which gives it 3.3% of Legendary’s common stock, to explore opportunities to co-produce local language films and produce video games.
Legendary said in a statement that the deal could enable the two firms to work together on television and online media as well and to consider new business opportunities in the fast-growing Chinese market.
This is the first such strategic investment for Legendary, which is led by Chairman Thomas Tull. In 2007, it raised $1billion to cofinance and produce movies with Warner Bros. as part of a five-year deal. Although many other private equity-backed film finance ventures have struggled or shut down in recent years, Legendary has fared well, with a string of hits including “300,” “The Dark Knight,” “The Hangover” and this summer’s “Inception.”
According to a regulatory filing, the investment gives Orange Sky the right to appoint one member to Legendary’s board of directors.
The deal implies a valuation for Legendary’s common stock of $825 million. However, a person familiar with Legendary’s finances said the company had other stock and value considerations that put its total value at more than $1billion.