China extends Hollywood push with $1 billion Paramount Investment

Paramount Pictures received $1 billion cash investment from two Chinese film organizations. That two Chinese film companies are Shanghai Film Group (SGF) and Huahua Media and they are giving strength, support to the US studio.

According to the agreement, for the next three years, Huahua Media and Shanghai Film Group will finance a combined 25% of all Paramount’s movie. A known source who is familiar with the whole agreement said there is an option to extend this to the fourth year. New Chief Executive Officer Bob Bakish of Viacom focuses which is a mother firm did the whole deal and turnaround plan under his guidance.

It additionally complies with a spate of tie-ups between China as well as United State producers, with Chinese investors progressively eager to provide their financial strength to increase their stake in Hollywood.

U.S. workshops such as Detector Bros, Walt Disney Co, Dreamworks, Lionsgate as well as STX Entertainment have all made tie-ups with Chinese firms to money arrangements or aid improve their existence in China's fast-growing movie industry.

Chinese real estate conjunction Dalian Wanda Group bears $3.5 billion to purchase a controlling stake in U.S. Film workshop Legendary Entertainment last year. On the other hand, in 2015 Paramount stayed with Alibaba Pictures Group Ltd to promote "Mission: Impossible - Rogue Nation" in China.

CEO of Paramount Pictures Brad Grey said in an interview with Reuters that the studio could now use the recent partnership like an entry point into China. He also added the studio will be interested in making movies in the country someday.

Grey said, "Certainly Paramount would love to produce films (in China) and we think that should be a win for us".

The arrangement marks the very first major action by Grey since Viacom's former Chief Executive Officer, Philippe Dauman, attempted to offer a 49 percent stake in the motion-picture studio to Dalian Wanda last year.

In a given year it is said for past few years Paramount production fell as low as eight movies under Dauman. On Grey’s words "This will give Paramount the wherewithal to build the slate and produce, as a major studio should, 15-17 movies a year".  Referring to the lower figure Grey said, "You really can't operate a major studio with that".

Shanghai Movie Team and Huahua Media stated in a joint declaration with Paramount that they were eager to grow their participation on movie jobs via the offer. Both companies decreased to comment even more when called by Reuters on Friday.

Shanghai Film Group was a venture capitalist in "Jack Reacher: Never Go Back" and Huahua has partnered with Paramount on several films, including "Transformers: the Age of Extinction" and "Star Trek Beyond".