Internet group Tencent invested an amount reported by the Los Angeles Times to be more than $100m in US-based entertainment producer Skydance Media.
Founded in 2010, Skydance co-produces and funds feature films as well as television and animation, gaming and digital media content.
The company’s main partner is Paramount Studios, which distributes the films. Its cinematic catalogue includes two Star Trek films, the last instalment in the Terminator franchise and the three latest Mission Impossibles.
In addition to its motion pictures, Skydance has co-produced television shows Grace and Frankie, Manhattan and Ten Days in the Valley. It was founded by David Ellison, the son of Oracle founder Larry Ellison and brother of Academy Award-nominated producer Megan Ellison.
The investment gave Tencent a stake of between 5% and 10% in Skydance, a person familiar with the deal told the LA Times. It was made as part of a wider strategic partnership that will give Skydance access to China-based Tencent’s knowledge of gaming and the Asian market.
Tencent will in turn be able to co-finance films with Skydance in addition to being in pole position for Chinese marketing, distribution and merchandising rights.
James Mitchell, Tencent’s chief strategy officer, said: “Skydance is nurturing successful entertainment franchises, especially in the action and science fiction genres, which are particularly popular in China.
“We believe this partnership will support Skydance’s expansion internationally, across media and into television production, and provide Tencent with attractive content that we can share with China consumers.”
Skydance had initially been funded by $350m in capital in 2010, consisting of $150m in equity funding from investors including Larry Ellison and a $200m revolving credit facility led by JPMorgan Chase.
Goldman Sachs was financial adviser to Skydance for the deal while Latham & Watkins was legal adviser to Skydance. Paul, Weiss, Rifkind, Wharton & Garrison was Tencent’s legal adviser.