Chinese language films made by Warner Bros. will soon be seen in cinemas as the movie powerhouse struck a deal with private-equity firm China Media Capital.
Under the deal, Warner Bros., owned by Time Warner Inc., will possess 49 percent of the venture that will be called Flagship Entertainment Group Ltd. and will be based in Hong Kong.
Kevin Tsujihara, the chairman and CEO of Warner Bros., said in a statement that through the partnership, their firm will "gain additional insight into the Chinese film industry."
Last month, the Wall Street Journal reported that the two parties were in talks for the said agreement.
Currently, China is the world's second largest movie market, next to the United States. Official media reports state that earlier this month, the Chinese box office has already reached the 30-billion-yuan mark in terms of ticket sales so far this year.
The local movie industry has also seen Chinese-language productions as generators of big revenue. For instance, the live-action movie "Monster Hunt" has fared well in the box office and recently went on as the country's all-time top grossing movie after pulling in 2.43 billion yuan--a remarkable feat for a homegrown title.
Moreover, foreign filmmakers have shown increasing interest to sign deals with local studios. This also comes despite the restrictions implemented by the Chinese government on the number of foreign films that can land on Chinese theaters every year.
According to the two companies, Flagship Entertainment could release its first title next year. Warner Bros.' expertise on distribution will be tapped as the venture looks into making big-budgeted productions.