Corporate > AG Deal Diary
04 Aug '17

This week we highlight Bloomberg BNA’s analysis “Corporate Cyber Risk Disclosures Jump Dramatically in 2017,” which examines SEC annual and quarterly filings from 2010 to June 30, 2017. The findings show that more public companies are citing cybersecurity as a risk in their financial disclosures in the first half of 2017 than in all of 2016, suggesting that board and C-suite fears over data breaches may be escalating.

 

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19 May '17

This week we highlight an article by Corporate LiveWire on the trends occurring within traditional film financing methods. Due to the changing markets, producers have started relying more heavily on international co-production arrangements to fund their projects which have created a necessity for filmmakers to create content that can appeal to a global audience. However, any formula for developing films and other content that will find success internationally and across various cultures remains elusive. This article will provide an overview of the importance of creating content that can be successful across geographic and cultural boundaries.

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22 Mar '17

After a record-breaking 2016 for Chinese companies’ investments in the film industry, changes to Chinese foreign investment policy have created uncertainty for the future of Hollywood’s relationship with the Middle Kingdom.  Late last year, the Chinese government began reviewing “irrational” investment activities in a number of sectors, including the entertainment industry.  As a result of this review, China began scrutinizing large investments in foreign companies that are outside the investor’s core business. Additionally, China’s concerns regarding the outflow of cash overseas led to increased capital controls. The State Administrator of Foreign Exchange issued a directive requiring the regulator’s approval before companies can transfer more than $5 million, in dollars or renminbi, out of China.

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29 Sep '16

U.S. lawmakers recently submitted a letter to the Government Accountability Office (GAO) raising concerns about increased Chinese investments in the U.S. film and entertainment industry and questioning whether the Committee on Foreign Investment in the United States (CFIUS or “the Committee”) is applying, and has authority to apply, sufficient scrutiny to these and other inbound investments. This development could be an indication that CFIUS will increase its examination of such investments, which would be consistent with the Committee’s application of evolving criteria for assessing national security concerns to deals that may not present obvious CFIUS issues. Consequently, non-U.S. investors would be prudent to consider CFIUS risks in making investments in the U.S. film and entertainment industry, as would U.S. companies seeking to divest such assets.

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26 May '16

As of October 1, 2016, British Columbia (B.C.) will reduce tax credits available to film and television productions. Basic production service tax credits will be reduced from 33 percent to 28 percent, and tax credits offered to digital productions, animation and visual effects work will be reduced from 17.5 percent to 16 percent. This change to the incentive structure has caused some concern among B.C. residents, fearful that foreign filmmakers (and the jobs they have created) may leave B.C. in favor of cheaper venues.

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19 May '16

PRC state media outlet CCTV has interviewed Akin Gump entertainment and media partner Christopher Spicer on “Mega mergers and the China factor.” The interview takes as its point of departure the $3.8 billion acquisition of DreamWorks Animation, home of franchises such as Shrekand Kung Fu Panda, by cable and media giant Comcast spurred by what it characterizes as a Chinese buyer’s courtship of the studio.

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