Paramount Pictures has signed a co-financing agreement with two Chinese companies for the Hollywood studio’s slate of movies over the next three years. Under the terms of the deal, Shanghai Film Group and Huahua Media will also set up an office on Paramount’s lot later this year.
The Chinese companies will provide roughly $1 billion to finance at least 25 percent of Paramount’s films, according to a person familiar with the deal who was not allowed to speak publicly.
Chinese investors have been expanding into entertainment companies overseas in a bid to boost the country’s international cultural influence, also known as “soft power,” as well as to acquire expertise. Foreign producers, meanwhile, are seeking greater access to China’s growing film market. Both sides aim to beef up their presence in each other’s movie industries.
Paramount Pictures already has cooperated with Huahua on several films including “Transformers: the Age of Extinction” and “Jack Reacher: Never Go Back.” Shanghai Film Group was an investor in the latter movie.
— Associated Press