Le­gendary Pic­tures gains China link

Hong Kong firm buys 3.3% of the Hollywood movie fi­nanc­ing and pro­duc­tion com­pany.

Los Angeles Times - - Company Town - Ben Fritz ben.fritz@latimes.com

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.