Lionsgate Entertainment, which is headed by Mark Rachesky, is said to be close to closing a deal that could be worth as much as $1.5 billion with China’s Hunan TV and Broadcast Intermediary Co Ltd. Rachesky heads MHR Fund Management, a $6 billion investment firm, which currently owns 38% of Lionsgate.
The movie studios are probably best known for their hit series “The Hunger Games” which star Oscar winner Jennifer Lawrence.
Reuters reported that the deal will include film production and distribution, according to a Chinese language statement on the Shenzhen stock exchange from the Hunan-based media company. It will be a three year agreement which will also cover film financing, film distribution, and local production in China.
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Chinese investors have been making acquisitions in Hollywood for a while now. Lionsgate itself had previously made a deal with Alibaba last year to offer a live streaming service in China to distribute movies and television shows.
In 2011 Rachesky spurned an effort by fellow billionaire investor Carl Icahn to take over Lionsgate, preferring to try and court Alibaba as an investor.