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China's Fosun exploring sale of Hollywood studio: sources
[SHANGHAI] Fosun Group, backed by billionaire Guo Guangchang, has explored options for its stake in Hollywood production house Studio 8 Inc including a sale, according to people familiar with the matter.
The insurance-to-pharmaceutical conglomerate has approached investors to discuss possibly disposing its stake as well as financing for films Studio 8 is producing, said the people, who asked not to be identified because details are private. Fosun values the studio, which it bought about three years ago, at as much as US$1 billion, one of the people said.
Fosun is not in formal talks with the potential suitors and may decide to retain its holding, according to the people. The group has 80 per cent equity interest in Studio 8's Class A investors, which, in turn, own 60 per cent of the company, a filing shows. A representative for Studio 8 declined to comment. Fosun is "very supportive and continues to be committed to Studio 8 as a long-term strategic shareholder", the company said.
Shanghai-based Fosun, which owns stakes in Club Med and Cirque du Soleil, is among China's most acquisitive firms. It's also among the companies that have come under scrutiny amid a crackdown on outbound deals that the government deems "irrational". This month Fosun entered exclusive talks to acquire Italian lingerie maker La Perla and agreed to buy part of China's Tsingtao Brewery Co.
Studio 8's founder Jeff Robinov is a former executive at Warner Bros Pictures, where he helped oversee films including "The Dark Knight" trilogy, "The Hangover" franchise and "Inception". The Culver City, California-based company also released "Billy Lynn's Long Halftime Walk", directed by Ang Lee. The movie, based on a novel about a US soldier returning from Iraq and shot with advanced technology, performed poorly at the global box office.
The production house, established in 2014, has US$1 billion of financing and was funded in partnership with Fosun and Sony Pictures Entertainment Inc, its website shows. Sony invested an undisclosed amount in Studio 8 in 2014 and agreed to distribute as many as six films a year for the studio.
Studio 8 is releasing two films in 2018, crime drama "White Boy Rick", starring Jennifer Jason Leigh and Matthew McConaughey, and "Alpha". The company has nine more titles under development, according to IMDB Pro.