The Hollywood Reporter Quotes Christopher Spicer on Impact of Chinese Crackdown on Investments in US Film Industry
Akin Gump entertainment partner Christopher Spicer has been quoted by The Hollywood Reporter for its article “Hollywood's China Money Heartbreak: Is the Love Affair Really Over?,” on the possible impact of a Chinese government crackdown on investments, particularly by non-entertainment sector companies, in Hollywood.
The article notes several Chinese deals in Hollywood that have failed, with fingers pointing at People’s Republic of China regulatory restrictions as the culprit, even as upcoming deals face opposition in Washington as well as Beijing.
Spicer, who has advised clients on transactions involving China, noted that studio deals involving a slate of films are unlikely to feel the impact of Beijing’s regulatory restrictions, pointing, instead, to problems for U.S. film companies who were seeking Chinese equity. He said, “I don’t think the dream’s over … but companies selling for crazy [money] to Chinese companies, those deals are over.”
Spicer added that several China-origin deals in Hollywood currently in the pipeline could still come to a successful close if the Chinese companies can avoid their government’s restrictions on exporting capital by having “enough money parked offshore.”