Bloomberg Businessweek Quotes P. John Burke on Hollywood Studios’ Search for Funding
Bloomberg Businessweek has quoted P. John Burke, a partner at Akin Gump and head of the firm’s entertainment practice, in “Hollywood Is Scrambling to Replace Chinese Funding.” The article addresses the need for U.S. movie studios to find new sources of funding following a crackdown by China last year on overseas investments in entertainment by mainland companies.
Paramount Pictures Corp., the article notes, was expecting a combined $1 billion from Shanghai Film Group and Beijing’s Huahua Media to help finance movies for the next three years before a scheduled payment was missed. Millennium Films had a deal with Chinese businessman Tony Xia to pay as much as $100 million for a 51 percent stake in the company, but that deal was put on hold.
“Chinese investors exiting the market is a big deal,” said Burke, who has represented several Chinese investors seeking to co-finance films with U.S. producers. “They had become the latest wave of attractive funding for Hollywood.”