UPDATE, 4:04 AM: The official press release from Harvest Seven Stars Media Fund detailing its investment areas is below.
PREVIOUS, 2:56 AM: Last month, I reported on a group of Chinese investors said to be “scouring” Hollywood for acquisitions. That consortium, led by Chinese media entrepreneur Bruno Wu along with Harvest Global Investment and Pacific Alliance Group, was eyeing a big target after holding preliminary talks with Summit ahead of its acquisition by Lionsgate. Companies thought to be in the consortium’s sights included Lionsgate and Miramax. Today, The New York Times reports that Wu and his wife Yang Lan, a well-known Chinese TV personality, are joining Harvest Fund Management via their Sun Media Group to create Harvest Seven Stars Media Private Equity, an $800 million fund to invest in existing entertainment companies, provide backing for filmmakers and build a distribution system in China and elsewhere.
China is booming right now amid a 30% surge in box office in 2011 and expectations that receipts will reach $5 billion in the next few years. According to the Times report, Wu said he and his partners are eager to bring blockbuster-style films into China by participating in big-scale co-productions. And, Wu’s not ruling out a Reliance-like investment in a Hollywood company. Asked if the new fund would back a company as big as DreamWorks, the media entrepreneur answered in a word, “Yes.” The NYT says CAA is advising the fund via its Beijing office with several deals with producers nearing completion. “The goal is pretty straightforward; it’s to make a maximum return, of course, for the investors,” Wu told the newspaper. (more…)