Lionsgate is negotiating with Chinese media group Hunan TV & Broadcast Intermediary Co. Ltd. to strike a three-year, $1.5 billion film production agreement.

Sources with knowledge of the talks told Playback Daily that Vancouver-based Lionsgate and Hunan TV are in “advanced discussions.” The $1.5 billion price tag for the possible film distribution pact came from a Schenzen Stock Market filing, which Reuters first reported on.

The deal, if reached, would see Hunan TV establish a U.S. unit, based in Los Angeles, with Lionsgate helping the Chinese company extend its reach into international film production and distribution.

Lionsgate in turn would coproduce movies with Hunan TV. Total investment in the possible film and distribution pact, which would also include TV initiatives, is expected to reach $1.5 billion.

Besides releasing its movies in China, Lionsgate last year pacted with Chinese e-commerce giant Alibaba Group to launch Lionsgate Entertainment World, an SVOD for mainland China.