Chinese studio Bona Film Group has recently announced a new partnership with U.S. financier TSG Entertainment Finance. The collaboration will see Bona investing in a range of upcoming Hollywood franchise movies, including highly anticipated titles like “Avatar” and “Deadpool”. This agreement marks an extension and expansion of the existing relationship between Bona and TSG, which was established in 2015. While the financial terms have not been disclosed, it is widely considered to be a significant move for both companies.
Co-Investment Slate Financing Deals for Risk Management
Bona’s commitment to co-investing with TSG in a slate of films through a previous deal has proven to be a successful risk management strategy. By providing $235 million for co-investment, Bona has been able to minimize risk while still being involved in a diverse range of projects. This approach allows studios to earn a respectable margin while maintaining a degree of control over their investments. Through this collaboration, Bona has already been involved in financing films such as “The Martian,” “Independence Day: Resurgence,” and “War for the Planet of the Apes.”
Changing Landscape of China-U.S. Co-Productions
China-U.S. co-production deals were once abundant, with Chinese companies actively investing in Hollywood and seeking partnerships and acquisitions. However, since 2018, the Chinese government has imposed stricter regulations on dealmaking, leading to a decline in such collaborations. Additionally, the trade and technology war between the U.S. and China, along with the rise of streaming platforms, has further impacted cross-border business dealings. Hollywood films have also experienced a decline in success in Chinese theaters, while Chinese titles have gained dominance in the country’s own theatrical and streaming markets.
Bona Film Group’s Position in the Chinese Industry
Despite the challenges faced by the Chinese film industry in recent years, Bona Film Group has managed to navigate through the turmoil successfully. Known for its commercial and patriotic films, Bona has become one of the few studios to emerge relatively unscathed. While the company has encountered some dramatic moments, such as the delayed release of Quentin Tarantino’s “Once Upon a Time in Hollywood” due to a complaint from Bruce Lee’s daughter, it has continued to solidify its position in the industry.
Exciting Ventures Ahead for Bona Film Group
Yu Dong, the founder, chairman, and CEO of Bona Film Group, expressed his excitement about the extended partnership with TSG. He affirmed that Bona is looking forward to participating in the “Avatar” and “Deadpool” franchises, along with continuing their involvement in “The Planet of The Apes” and “Alien” franchises. Chip Seelig, managing member of TSG Entertainment, also expressed his enthusiasm for the partnership and the rare opportunities that the Chinese market presents. Both companies hope to further develop the Chinese market through their collaboration.
With the Chinese box office market showing signs of recovery, Bona Film Group’s expansion into Hollywood franchise investments is a strategic move that aligns with the company’s long-term goals. With a current market capitalization of $1.4 billion, Bona is poised to capitalize on the opportunities that lie ahead in the ever-evolving film industry.
Source: F5 Magazine