Bottom line: DreamWorks Animation’s withdrawal from its China joint venture marks the end of an explosive phase in China-Hollywood tie-ups, with one-off co-production deals the most likely form of cooperation going forward.
Take-two for DreamWorks Animation China JV
In what could herald a wave of the future, a highly-touted joint venture between DreamWorks Animation and Shanghai’s China Media Capital (CMC) has come unglued, with the official departure of DreamWorks from the tie-up. This particular exit appears quite symbolic, as Oriental DreamWorks was the first of what ended up becoming a huge wave of similar tie-ups between China and Hollywood. Thus the big question becomes if this abandonment of the venture could signal more unraveling of similar tie-ups ahead.
I suspect the answer to that question is yes, but perhaps not for the reasons you might expect. It appears that DreamWorks Animation’s decision to quit the joint venture owed to disappointing results, and I suspect the company’s acquisition by Comcast two years ago was also a factor. The fact of the matter is that China’s movie market still has huge potential. But Beijing has shown less appetite for these China-Hollywood tie-ups these days, less for political reasons and more because it is trying to stem the outflow of money for foreign acquisitions. Read Full Post…
The following press releases and news reports about China companies were carried on July 26. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) Says Group Withdraws Offer to Acquire iQiyi (PRNewswire)
Wanda’s AMC (NYSE: AMC) Raises Bid for Carmike (Nasdaq: CKEC) to $1.2 Bln (Chinese article)
Chinese Dealmaker Sonny Wu Said to Lead Takeover of AC Milan (English article)
Bottom line: Fosun’s New York IPO plan for US insurer Ironshore could draw strong interest due to Fosun’s China and global connections, and may ultimately raise up to $1 billion later this year.
Fosun eyes NY listing for Ironshore
China’s recent global buying spree has created some interesting investment opportunities, as Chinese acquirers increasingly look to western investors to help pay for their purchases. One such new opportunity is in the headlines this week, with word that Chinese private equity giant Fosun (HKEx: 656) is aiming to launch a New York IPO for its recently acquired US insurer Ironshore. In this growing trend, the Chinese investors are hoping to generate some buzz for this kind of IPO by taking regionally-focused assets and repositioning them as global plays, often with a big China focus. Read Full Post…
The following press releases and news reports about China companies were carried on March 25. To view a full article or story, click on the link next to the headline.
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Microsoft (Nasdaq: MSFT) Says Has Developed First Windows 10 for China Govt Use (Chinese article)
Second Carmike (Nasdaq: CKEC) Shareholder Calls AMC’s Offer Too Low (English article)
Huayi (Shenzhen: 300027) HK Unit Invests 230 Mln Yuan in Korean Film Maker HB (Chinese article)
Wanda Says Film Affiliate Raised $2.4 Bln in Share Sale (English article)
ZTE (HKEx: 763) Announces New Date for Annual Results Announcement (HKEx announcement)
The following press releases and news reports about Chinese companies were carried on March 5-7. To view a full article or story, click on the link next to the headline.
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Wanda’s AMC (NYSE: AMC) Theater Chain to Buy Carmike for $1.1 Bln (English article)
Tencent (HKEx: 700) to Invest $1 Bln in Sohu (Nasdaq: SOHU) Video Unit – Source (Chinese article)
Adidas (Frankfurt: ADS) to Boost China Outlets by a Third With 3,000 Stores (English article)
HutchisonChina MediTech Announces Launch of Potential US IPO of ADSs (Businesswire)
Bank of China (HKEx: 3988) to Spin Off, Separately List BOC Aviation Unit (HKEx announcement)
Latest calendar for Q4 earnings reports (Earnings calendar)
China’s growing love affair with Hollywood is reaching new peaks, with word that major studio Paramount Pictures may be preparing to sell a stake of itself to a Chinese buyer. Such a deal would be the highest profile investment yet in an ever-growing string of Chinese tie-ups with Tinseltown over the last 2 years. In some ways the movement looks strangely similar to Japan’s invasion of Hollywood more than 25 years ago, which saw Universal and Columbia Pictures sold to Japanese buyers.
That parallel may lead some to wonder if this latest Chinese drive into Hollywood could end with similarly disappointing results that saw both studios sputter under Japanese ownership. Prickly US-China relations could also add an element of discomfort to this new budding love affair, since Beijing enjoys a far less friendly relationship with Washington than Tokyo. Read Full Post…
Bottom line: ChemChina might be advised to maintain Pirelli as an independent unit and limit the size of an IPO if succeeds in buying the Italian tire maker and decides to re-list the business.
WH Group, AMC IPOs offer lessons for ChemChina
The headlines are buzzing today with word that state-run behemoth ChemChina may try to re-list Pirelli (Milan: PC) after it purchases the Italian tire maker, which got me to thinking about how the China factor might affect such an IPO. In theory at least, investors might get quite excited about a company they once disdained after its purchase by a Chinese buyer, due to hopes for lower costs and greater profits. But a look at 2 recent cases of major US firms that were acquired by Chinese buyers, then re-listed, shows the reality can vary widely and that a Chinese owner isn’t necessarily a panacea for an ailing overseas company. Read Full Post…
A growing love affair between Hollywood and Shanghai has taken a major step forward, with the formal ground-breaking for a $2.4 billion entertainment complex being co-developed by US giant DreamWorks Animation (NYSE: DWA) and the city’s leading broadcaster. As a longtime industry watcher, I’m most encouraged that this project is actually moving forward, even if the latest price tag is a bit lower than the figure given when the deal was first announced nearly 2 years ago. Over the years I’ve seen too many cases where big new Sino-foreign projects have been announced with big fanfare, only to later die quiet deaths due to failure to get necessary approvals and financing. Read Full Post…
Two interesting new reports about China’s box office paint very different pictures about the country’s movie industry. Everyone agrees the sector is growing at a rapid clip, and will probably eclipse the US over the next decade to become the world’s largest box office. But who exactly is fueling that growth is a subject of debate, with one report saying domestic productions are suddenly surging as another says Chinese film companies are boosting their appetite for foreign productions. The underlying factor behind this apparent paradox is a growing confluence between East and West, with foreign studios increasingly working with Chinese partners and customizing their films for Chinese audiences. Read Full Post…
I want to use one of my final posts for September to take a look at the IPO outlook for Q4, specifically what we might expect to see for new Chinese offerings in New York in the final 3 months of 2013. When the history books are written, this year will probably go down as one of the weakest in recent memory for New York IPOs by major Chinese firms. But that said, I do still expect to see a small flurry of activity in the fourth quarter, based on recent reports of new listing plans and signs that a 2-year-old purge of dubious Chinese firms from US stock markets may be finally wrapping up. Read Full Post…
The growing China-Hollywood love affair has taken an interesting and new twist with the purchase of a major bankrupt US digital effects studio by a partnership between a Chinese production house and one of India’s leading communications groups. Adding further intrigue to the picture are the bankrupt US venture’s links to blockbuster director James Cameron, who seems to have taken his own a sudden interest in the China market. If all of this sounds like something from a Hollywood movie, then perhaps it’s because so many US entertainment executives are getting overly excited about the huge potential of the Chinese movie and TV markets, which appear to finally be opening after years of being largely closed to foreign investment. My main advice to all the excited parties, both in China and the US, would be to temper their big expectations with some realism, as it’s quite possible that either Beijing or Washington could quickly become worried about this rapidly evolving love affair and take steps to cool things off.
The growing China-Hollywood love affair has taken an interesting and new twist with the purchase of a major bankrupt US digital effects studio by a partnership between a Chinese production house and one of India’s leading communications groups. Adding further intrigue to the picture are the bankrupt US venture’s links to blockbuster director James Cameron, who seems to have taken his own a sudden interest in the China market. If all of this sounds like something from a Hollywood movie, then perhaps it’s because so many US entertainment executives are getting overly excited about the huge potential of the Chinese movie and TV markets, which appear to finally be opening after years of being largely closed to foreign investment. My main advice to all the excited parties, both in China and the US, would be to temper their big expectations with some realism, as it’s quite possible that either Beijing or Washington could quickly become worried about this rapidly evolving love affair and take steps to cool things off.
