Jeff Robinov's New Company Studio 8 Financed $1B By China's Fosun International | NikkiFinke.com

Fosun  International Ltd filed with the Hong Kong exchange just now (where it is Monday morning their time) announcing the company’s investment in Jeff Robinov’s new company Studio 8.  I’m told that Fosun’s investment in Studio 8 will mean the Warner Bros Pictures former chief’s new company will have a combined equity and debt of around $1 billion. Once the structure is finalized, details will be announced. But I can tell you that Fosun International onJune 6th entered into a unit purchase agreement with Robinov’s Studio 8 to invest. Before founding Studio 8, Robinov served as a top executive at Warner Bros Pictures Group for 17 years, most recently as President of Warner Bros Motion Pictures Group, until he left last year. He has some of the best talent relationships in the business, including Christopher Nolan, Ben Affleck, and Baz Lurhmann. Under the Agreement, Fosun International will exercise significant influence over the distribution arrangements of movies produced by Studio 8 in the mainland of China, Hong Kong, Macau and Taiwan regions. Robinov still needs to put together other distribution, and I hear there’s no contractual right for anyone to co-finance Fosun-Studio 8 films.

Fosun International "is optimistic about the future prospects of the Chinese film industry. Through the Transaction, the Company hopes to introduce Hollywood’s advanced and sophisticated film making expertise and technique, movie concept and technology and complete production and publication systems into the China market, in order to drive the development of the Chinese film industry.

"Going forward, the Company will continue to integrate the world’s leading film and entertainment resources to build a global culture platform encompassing movies, entertainment, cultural consumption and media networks through mergers and acquisitions and equity investments."

It has been exceedingly hard for former Hollywood studio moguls to find financing for their new endeavors. But Robinov’s incredible track record combining huge grossing tentpoles like the Dark Knight trilogy and Oscar-winning films like Argo made this deal come together relatively quickly. He had been talking to Beijing-based Huayi Brothers Media Corp but for a much smaller amount – reportedly $120M-$150M – before this investment. Fosun is based in Shanghai where it manages four types of businesses; insurance, direct investment, asset management and industrial operations with monies in steel, mining and pharmaceuticals. The company is listed on Hong Kong’s stock exchange. In April, Fosun International launched a venture capital branch in Silicon Valley, earmarking $100 million to invest in technologically-driven startups. In December, Fosun also bought 6% of Bona Film Group.

UPDATE: The following is Fosun International’s news release about the Studio 8 deal:

Fosun Enters Hollywood by Investing in U.S. Film Studio

(Shanghai, 23 June 2014) Fosun International Limited (HKEx stock code: 00656, together with its subsidiaries, “Fosun”), announced that on 6 June 2014, Fosun signed a unit purchase agreement with Studio 8 from the U.S.. Fosun will invest in Studio 8.

Through this investment, Fosun plans to bring Hollywood’s advanced and sophisticated film making expertise and technique, movie concept and technology, complete production and publication system to the China market, in order to drive the development of the Chinese film industry and worldwide film growth. Meanwhile, there will be more opportunities to share Chinese elements and stories in Studio 8’s Chinese co-productions. Fosun will integrate the world leading film and entertainment resources to build a global culture platform covering movie, entertainment, culture consumption and media network with various means as M&A and equity investment.

Before founding Studio 8, a company specialized in movie and entertainment business, Mr. Jeff Robinov served as an executive at Warner Bros. Motion Pictures Group for 17 years, most recently as President of Warner Bros. Motion Pictures Group. Robinov helped oversee some of the most commercially successful and critically acclaimed films and franchises in recent memory including The Dark Knight trilogy (over $2.3 billion worldwide gross), The Hangover films (over $1.3 billion worldwide gross), Inception (over $825 million worldwide gross), Argo (over $230 million worldwide gross) which won the Oscar for best picture and Gravity which won seven Oscars, including best director. Studio 8 will keep Hollywood’s successful business model, starting the business from film making, TV and derivate products. Eventually, the company will apply the content-based materials to the mobile and internet industry.

Mr. Jeff Robinov said, “We are happy to partner with Fosun, a well-respected Chinese company with global investment capabilities. Both China and the U.S. possess the film markets with the most influence and potential and we are excited to unite the markets, teams, technologies and respective advantages and work together on building a number of top-level films including co-production films between China and other countries.”

Fosun believes that China has already become the world’s second largest motion pictures market, and is expected to surpass the U.S. as the world’s largest market in the next few years. With the trend of integrating the global culture and entertainment market, the consumption of movie and entertainment has grown significantly. This investment is a significant strategic footprint for Fosun in the global movie and entertainment industry. Guo Guangchang, Chairman of Fosun Group, said that,“ Mr. Jeff Robinov and Studio 8 are one of the best and experienced teams in Hollywood. Our partnership will combine the resources of China and Hollywood to build a global platform not only focusing on movie and entertainment investment, but also aiming to integrate our resources around the world.”

In the future, Fosun will exercise significant influence over the distribution arrangements of movies produced by Studio 8 in the mainland of china, Hong Kong, Macau and Taiwan regions. Fosun hopes to bring the best Hollywood movies to the Chinese audience which will create the best possible viewing experience. Meanwhile, Fosun will also establish an investment, financing and business operation platform taking roots in China’s culture consumption market and focusing on the global movie and culture industry.

Previously, Fosun has already made other investments in the culture industry, including Focus Media, Bona Film Group, etc.