Four Firms Help Launch DreamWorks Joint Venture

06 September 2012

China Media Capital and US-based animation company DreamWorks Animation SKG have launched a joint venture, Oriental DreamWorks, which will focus primarily on film and television content production. The joint venture was officially launched in Shanghai on August 7, 2012.

Oriental DreamWorks is one of the largest international investment projects in China and is positioned to

be the leading China-focused family entertainment company, according to a statement from Paul Hastings, which advised China Media Capital on the deal.

A statement from Paul, Weiss, Rifkind, Wharton & Garrison, one of three firms which advised DreamWorks, indicated that the Chinese companies will hold a majority stake of approximately 55% in Oriental DreamWorks and DreamWorks would hold approximately 45%. Initially, Oriental DreamWorks will be capitalized with cash and intellectual property valued at US$330 million.

Oriental DreamWorks expects more than 2,000 animation film and television production professionals from China and around the world to join the company in order to apply leading-edge computer graphics creative processes and production technology toward the creation of animated content featuring Chinese cultural elements.

The company announced at its launch that Kung Fu Panda 3 will be made in China as a co-production and is expected to be released globally in 2016. The first featurelength animated film solely created by Oriental DreamWorks is expected to be distributed worldwide in 2017. After its inaugural feature production, Oriental DreamWorks plans to release one to three event films per year, building up a production capacity and operational standard that could compete with any international animation company.

In addition, China Media Capital, DreamWorks Animation and the Xuhui district government in Shanghai signed a memorandum of understanding to develop “Dream Center,” an Rmb20 billion (US$3.15 billion) metropolitan cultural landmark in the waterfront area of Xuhui district that integrates media, performing arts, entertainment, leisure living and tourism.

The Paul Hastings team was led by partners Jia Yan and David Wang (corporate), Matthew Berger and Rob Carlson (IP licensing), Tom Wisialowski (tax) and Tom Zaccaro and Ananda Martin (compliance).

DreamWorks was led by a team of lawyers including Cravath, Swaine & Moore corporate partners in New York Faiza Saeed and Eric Schiele; San Francisco-based Morrison & Foerster technology of counsel Aaron Rubin; and Paul Weiss corporate partner Jeanette Chan, who is based in Beijing.

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