Huayi Brothers Media Corporation Closes And Funds Major Three-Year Film Slate Deal With Motion Picture And Television Studio STX Entertainment

--STX Entertainment Expands Slate to Release 12-15 Films Annually By 2016--

News provided by

Apr 01, 2015, 11:25 ET

LOS ANGELES, April 1, 2015 /PRNewswire/ -- Dennis Wang, Chairman and CEO of China's Huayi Brothers Media Corporation, Robert Simonds, Chairman & CEO of motion picture and television studio STX Entertainment, and Donald Tang, Managing Partner of Tang Media Partners, jointly announced today they have closed and fully funded a major three-year slate financing agreement, effectively launching a global strategic partnership between the companies.

The slate financing deal will allow STX Entertainment to significantly expand and accelerate its capabilities well beyond its originally stated business plan, in addition to increasing its global reach and solidifying a stronger distribution position in China. The studio, which was founded on the principle that mid-range wide appeal films were under-represented in the current landscape, was already on an aggressive track to produce, market and distribute 8-10 major motion pictures a year. This agreement with Huayi allows STX Entertainment to immediately greenlight additionally identified projects and to increase their release schedule to 12-15 films a year by 2016.

Under the terms of the groundbreaking deal, Huayi will co-fund, co-produce and co-distribute virtually all STX Entertainment films through the end of 2017. Huayi Brothers will have global revenue share of the co-produced films, and will considerably strengthen its imprint in the United States while immediately establishing a prominent worldwide foothold in film production and distribution. As part of the pact, Huayi will be granted a first look distribution deal in China on most STX Entertainment films. The deal marks the first time that a Chinese film company will be involved in the entire process -- from production, to marketing and distribution.

In making the announcement, STX Entertainment Chairman and CEO Robert Simonds stated, "I am honored to be in business with Dennis Wang and James Wang, whose vision has done so much to reshape the film and entertainment landscape in Asia, and now here in Hollywood." Simonds added, "My long-time friend and business partner Donald Tang applied his unique brand of international financial savvy and limitless tenacity to the creation of this pioneering agreement. Donald's integrity and credibility is respected throughout the entertainment industry on both sides of the Pacific. And his involvement was instrumental in making all this possible. I look forward to many more decades of partnership with Donald and Huayi Brothers."

Dennis Wang of Huayi Brothers expanded on the arrangement, "Huayi Brothers has been exploring global expansion for a long time. I am very excited that Huayi Brothers is now in partnership with STX Entertainment, which is known for its strong production and distribution capabilities in Hollywood. This deal will help Huayi Brothers access the Hollywood film industry, with participation in all segments including film financing, production and distribution. Partnership with STX is an important step as Huayi Brothers implements its international growth strategy and enters the U.S. film market. This agreement will also improve Huayi Brothers' core film business and help promote the company's brand globally. In addition, Huayi Brothers' unrivaled position in China's film market will help bring the properties that both companies co-develop into the Chinese market. STX Entertainment is the perfect strategic partner for our first major deal in the United States."

Donald Tang noted, "Tang Media Partners is focused on facilitating international collaboration between entertainment and media companies in the United States and China. This agreement between Huayi Brothers and STX Entertainment is a model for what can be achieved when great companies are determined to find the right formula to catalyze their success together. Much more than a financial transaction, the partnership between Huayi Brothers and STX Entertainment is a strategic alignment that will maximize the synergies inherent in each company's unique skill sets and assets. And I must thank my friend and colleague Dominic Ng Chairman and CEO of East West Bank for his commitment and leadership and East West Bank's contribution to this milestone transaction."

The STX Entertainment deal is one of the first major slate deals to close and fully fund between a Chinese-based studio and a stand-alone full-scale American studio. The pact increases Huayi Brothers' growing global footprint in the entertainment industry and strengthens its presence in the United States. China's biggest Internet companies, Alibaba and Tencent, have each recently taken 8% interests in Huayi Brothers Entertainment, making it the leading entertainment business in China.

While the financial terms of the Huayi Brothers agreement remain undisclosed, the deal is fully funded and Huayi Brothers will partner on nearly every STX Entertainment title produced by the studio during the term of the deal, including the recently announced The Free State of Jones, directed by 4-time Academy Award nominee Gary Ross and starring Academy Award-winner Matthew McConaughey and Gugu Mbatha-Raw; The Gift, a psychological thriller directed by Joel Edgerton and produced by Jason Blum that stars Jason Bateman, Rebecca Hall and Edgerton; and The Boy a horror film from William Brent Bell (The Devil Inside), written by Stacey Menear and starring Lauren Cohan ("The Walking Dead").

STX Entertainment closed its initial financing in March 2014. This new arrangement, when combined with the facilities already in place for STX, now enables the studio to spend approximately $1 billion every year on producing, marketing and distributing its films worldwide.

Referring to the benefits of the deal, Adam Fogelson, Chairman of STX's Motion Picture Group added, "We are thrilled that we have been so immediately embraced by the creative community, and feel fortunate to have attracted a number of outstanding projects involving high caliber filmmakers and talent. This agreement with Huayi Brothers allows us to take advantage of these opportunities and immediately broaden our plans in a meaningful and significant way."

About Huayi Brothers Media Corporation

Huayi Brothers Media Corporation, headquartered in Beijing, China, is a film production company, record label and talent agency founded by brothers Dennis Wang and James Wang in 1994. Today it produces movies and TV shows, games, and fan communities, operates talent agencies, movie theaters and movie theme parks, and is prominent in the music business.

Huayi Brothers primarily invests and operates in three major business segments: the media and entertainment business including films, TV shows, and talent agencies; brand licensing business including movie communities, cultural cities and movie theme parks; and interactive entertainment businesses including gaming, new media and online distribution. In recent years, Huayi Brothers has been known for its forward-thinking and innovative philosophies and is widely considered as the pioneer and leader in China's media and entertainment industry.

About STX Entertainment

STX Entertainment is a fully-integrated motion picture and television studio specializing in the production, marketing, and distribution of talent-driven films and television programming. The multi-platform studio is rapidly moving to include digital production and distribution, in addition to gaming. It is the first major studio to be launched at this scale in Hollywood in more than twenty years.

STX Entertainment is led by prolific businessman Robert Simonds and was co-founded by TPG Capital, a leading global private investment firm with $65 billion of capital under management. In addition to backing from TPG Capital, additional investors include blue chip financial partner Hony Capital, a leading private equity firm in China, and business interests of Gigi Pritzker and Beau Wrigley, among others.

http://stxentertainment.com/

For More Information:

Steve Elzer
Elzer & Associates
[email protected]
(213) 607-3591

Yijun Zhang
[email protected]
+861065805864

SOURCE STX Entertainment