China’s Huayi Brothers, the leading film and television company in the country, formally finalized and inked a deal with STX Entertainment, agreeing to co-finance and distribute 18 film titles.
The shareholder approval of the company’s directors at a Wednesday meeting in Beijing marks one of the prime investments of a Chinese firm to a Hollywood-based studio film company.
Representatives from Manatt, Phelps & Phillips, LLP, led by Lindsay Conner comprised the team negotiating for Huayi Brothers.
The recently formalized agreement serves as a breakthrough deal for the country’s largest private-sector film company. The Huayi Brothers recently experienced two previous partnerships that did not prosper.
A much-anticipated deal with Legendary Entertainment in 2013 and a 2014 $100-120-million venture with Jeff Robinoy’s Studio 8 both failed to materialize.
Despite the downfalls, siblings Wang Zhongjun and Wang Zhonglei are still adamant to secure a market share in the U.S. film business. The company has already invested in a number of individual film titles to date. These include “Fury” (Sony), “Mortdecai” and “John Wick” (Lionsgate).
Huayi Brothers was also able to set up a subsidiary in the U.S.
Meanwhile, STX Entertainment, which was launched last year, made headlines after amassing veteran film executives such as Adam Fogelson, former Universal chairman, and Oren Aviv, a top-calibre marketing executive.
STX is set to release a psychological thriller, “The Boy and The Secret in Their Eyes,” top-billed by Nicole Kidman, Julia Roberts and Chiwetel Ejiofor.