Lionsgate to unveil $1.5B pact with Hunan TV on Wednesday

The agreement includes the Vancouver-based mini-studio receiving up to $375 million in production financing over the next three years.
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Lionsgate is to unveil on March 18 its newly inked $1.5 billion film production pact with China’s Hunan TV & Broadcast Intermediary Co.

The deal, confirmed to Playback Daily by sources close to the recent negotiations, will include the Vancouver-based mini-studio receiving up to $375 million in production financing over the next three years.

The agreement will be unveiled in Changsha on Wednesday in China. It is expected to include Hunan TV establishing 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 will 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.