Viacom's Paramount Pictures Hasn't Received Funds from Financing Deal with Chinese Partners
September 08 2017 - 3:49PM
Dow Jones News
By Ben Fritz
Viacom Inc.'s Paramount Pictures has received none of the money
it is owed by two Chinese partners in a $1 billion co-financing
deal signed in January, the studio's chief executive said
Friday.
Shanghai Film Group Corp. and Huahua Media in January agreed to
cover 25% of the cost of every movie Paramount makes for three
years. But the funds have been held up by regulatory hurdles on
foreign investment imposed by the Chinese government, Paramount
Chief Executive Jim Gianopulos said at a media investor
conference.
"We haven't received the money we are entitled to under the
deal, but have been given continued assurances they're processing
or going through it," he said.
If the problems aren't resolved and the money doesn't come soon,
Mr. Gianopulos said, he has "a great deal of confidence" that
Paramount would be able to find new co-financing partners
quickly.
Co-financing deals, under which studios share a portion of the
risk and rewards of movies they make with other companies or
investors, are commonly used in Hollywood as a way to help smooth
the performance of the often-volatile movie business. A financing
partner could be highly useful for Paramount, as it has had a
number of recent box office flops and is ranked last among
Hollywood's major studios for the sixth straight year.
Write to Ben Fritz at ben.fritz@wsj.com
(END) Dow Jones Newswires
September 08, 2017 15:34 ET (19:34 GMT)
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