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China's Perfect World to fund Universal movies in $250 million deal

Published 02/17/2016, 05:34 AM
Updated 02/17/2016, 05:40 AM
© Reuters.  China's Perfect World to fund Universal movies in $250 million deal

SHANGHAI (Reuters) - Chinese film company Perfect World Pictures Co Ltd will invest $250 million into a slate of Universal Pictures movies, extending the tie-ups between China and Hollywood, as the world's second largest economy sees its box office soar.

The Chinese firm will help fund at least 50 Universal Pictures films over a five-year period through its Perfect Universe Investment Inc investment unit, the company said in a regulatory filing on Wednesday.

Universal Pictures, owned by Comcast Corp (O:CMCSA), is the studio behind blockbusters such as "Jurassic World" and "Fast and Furious", the latest installment which is one of China's biggest-ever grossing films.

Perfect World said the investment gives them a "direct link" into one of the biggest Hollywood studios, and would help them expand.

The Chinese firm added it would receive a proportion of global ticket sales, television and merchandising revenues for the films it funded.

China's box office takings are catching up fast with the United States; ticket sales are set to touch $8.9 billion in 2019 from about $5 billion last year, according to PwC.

However, global studios often have a tough time navigating censors and getting around a strict quota system for imported films.

Hollywood has been pushing hard in China: Warner Brothers announced a joint venture with China Media Capital in September, while Paramount Pictures, DreamWorks Animation SKG Inc (O:DWA), Lions Gate Entertainment Corp (N:LGF) and Walt Disney Co (N:DIS) have all joined with local partners.

In November, Chinese film distributor Bona Film Group Ltd (O:BONA) said it would invest $235 million into a slate of Twentieth Century Fox movies and help bring Hollywood productions to the Chinese market.

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