China’s Jiangsu Broadcasting Corp is taking an equity stake in Relativity Media as part of wide-ranging coproduction and strategic investment agreements the US studio struck last week.
The pair will develop, co-finance, coproduce and distribute film and television content for international markets and China, with JSBC making an equity investment as one condition of the deal. Jiangsu is one of China’s largest commercial broadcasters.
The agreement is one of two strategic moves Relativity is making in the Asian territory.
It has also entered into a binding agreement with SeedShine Capital, which will see the latter, a Chinese media investment firm linked to the Industrial and Commercial Bank of China Limited, invest in the company. The ICBC brokered the agreement.
“The partnerships with CFPI and JSBC will deepen our relationship with the Chinese media and entertainment industry and provide a world-class platform from which to co-develop Chinese and international film and television content from two leading organisations,” said Relativity CEO Ryan Kavanaugh.
“Combining our distribution and content with Relativity’s will strengthen the already formidable platforms of both our companies,” added JSBC president Bu Yu.
Significantly, proceeds from both investments will in part go toward acquiring film and television libraries, TV and other distribution networks, and advertising and branding agencies.
It will also go towards growing Relativity’s film releasing slate, expanding content creation and investment in over-the-top services and multi-channel networks.
Relativity is best known as a film financier and producer, though it has made a concerted push into television, with Kavanaugh delivering a keynote speech at MIPCOM last year. The firm recently attempted to hijack Disney’s takeover of the Maker Studios MCN.
Financial terms of the Chinese agreements were not disclosed.