GLENDALE, Calif., Feb. 17,
2012 /PRNewswire/ -- DreamWorks Animation SKG, Inc. (Nasdaq: DWA)
today announced that it has agreed to form a joint venture with
China Media Capital (CMC), with plans to include Shanghai Media
Group (SMG) and Shanghai Alliance Investment, Ltd. (SAIL), to
establish the leading China-focused family entertainment
company.
Oriental DreamWorks will engage in the development and
production of high-quality original Chinese animated and live
action content for distribution both within China and to other territories around the
globe. In addition to content creation, the joint venture will
pursue business opportunities in the areas of live entertainment,
theme parks, mobile, online, interactive games and consumer
products.
"We are incredibly proud to establish Oriental DreamWorks
alongside CMC, SMG and SAIL in this groundbreaking and historic
alliance to create the leading Chinese-branded family entertainment
company," said DreamWorks Animation's Chief Executive Officer,
Jeffrey Katzenberg. "Together with
our partners in China, we look
forward to building a first-of-its-kind enterprise to locally
conceive, produce and distribute high-quality creative content and
family entertainment experiences – not only for the people of
China but also for related export
markets."
"We share the same vision with DreamWorks Animation to build a
world-class family entertainment company," commented Ruigang Li, Chairman of China Media Capital. "By
combining the expertise of CMC in investment and operation, SMG in
media and entertainment management, SAIL in high-tech R&D, as
well as DreamWorks Animation in creative processes, innovative
technology and global network capabilities, Oriental DreamWorks
will be in a unique position to create high-quality content and
interactive entertainment products for China and international markets."
The Chinese companies will hold a majority stake of
approximately 55% in Oriental DreamWorks and DreamWorks Animation
will hold approximately 45%. The enterprise will initially be
capitalized with cash and intellectual property valued at
$330 million. The joint venture plans
to launch business operations in Shanghai later this year.
DreamWorks Animation has enjoyed a great track record of success
at the box office in China, led by
its blockbuster Kung Fu Panda
franchise. Kung Fu Panda was
the #1 animated film upon its release into China in 2008 and last year, Kung Fu Panda 2 became the highest-grossing
animated film of all time in the region, grossing approximately
$100 million.
About DreamWorks Animation
DreamWorks Animation creates high-quality entertainment,
including CG animated feature films, television specials and
series, live entertainment properties and online virtual worlds,
meant for audiences around the world. The Company has world-class
creative talent, a strong and experienced management team and
advanced filmmaking technology and techniques. DreamWorks Animation
has been named one of the "100 Best Companies to Work For" by
FORTUNE® Magazine for four consecutive years. In 2012, DreamWorks
Animation ranks #14 on the list. All of DreamWorks Animation's
feature films are now being produced in 3D. The Company has
theatrically released a total of 23 animated feature films,
including the franchise properties of Shrek, Madagascar, Kung Fu Panda and How to Train Your
Dragon.
About China Media Capital
China Media Capital (CMC) is China's first media sector focused fund
dedicated to media and entertainment investments in China and internationally. Approved by
China's National
Development and Reform Commission (NDRC) for an initial fund
size of RMB 5 billion, CMC's
prominent founding partners include China Development Bank (CDB),
one of China's largest financial
institutions with registered capital of over RMB 300 billion and total assets of over
RMB 5 trillion. CMC's investment
portfolio includes a controlling stake in News Corporation's
China assets, including TV
channels – Star (Xing Kong), Star
(Xing Kong) International and
Channel V (China) – as well as the
Fortune Star movie library, which is the largest movie library
across Asia.
About Shanghai Media Group
The second largest media conglomerate in China, Shanghai Media Group (SMG) has the
country's most comprehensive portfolio of media-related businesses,
including television (14 analog channels, 15 digital channels),
radio (11 frequencies), print media (9 newspapers and magazines),
new media (IPTV, mobile TV and Internet TV), home shopping, content
distribution, performing arts, education and talent management. In
addition to being China's leader
in delivering content and services in the traditional media sector,
SMG has the country's largest TV shopping outlet and dominant IPTV
operation.
About Shanghai Alliance Investment, Ltd.
As an investment arm of the Shanghai municipal government, Shanghai
Alliance Investment, Ltd. (SAIL), founded in 1994, has established
itself as a leader in China's
high-tech and financial sector investment. The mission of SAIL is
to deliver value for its shareholders as well as make contributions
to China's development by
providing resources to innovative technology companies. SAIL's
target industries include financial service, TMT, life science,
health care, and emerging low-carbon sectors such as clean energy,
new material and eco-environment protection. Capitalizing on its
distinctive local experience, extensive government networking,
industry expertise and strategic insights, SAIL is recognized as a
preferred Chinese partner for leading international
corporations.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. The Company's plans, prospects, strategies, proposals and
our beliefs and expectations concerning performance of our current
and future releases and anticipated talent, directors and storyline
for our upcoming films and other projects, constitute
forward-looking statements. These statements are based on current
expectations, estimates, forecasts and projections about the
industry in which we operate and management's beliefs and
assumptions. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which
are difficult to predict. Actual results may vary materially from
those expressed or implied by the statements herein due to changes
in economic, business, competitive, technological and/or regulatory
factors, and other risks and uncertainties affecting
the operation of the business of DreamWorks Animation
SKG, Inc. These risks and uncertainties include: audience
acceptance of our films, our dependence on the success of a limited
number of releases each year, the increasing cost of producing and
marketing feature films, piracy of motion pictures, the effect of
rapid technological change or alternative forms of entertainment
and our need to protect our proprietary technology and enhance or
develop new technology. In addition, due to the uncertainties and
risks involved in the development and production of animated
feature projects, the release dates for the projects described in
this document may be delayed. The formation of the joint venture is
subject to a variety of risks, including, without limitation, the
requirement that the parties negotiate final definitive agreements
and the impact of a change in governmental regulation in
China on the business activities
of the joint venture or the Company's ownership and activities as a
member of the joint venture. For a further list and description of
such risks and uncertainties, see the reports filed by us with the
Securities and Exchange Commission, including our most recent
annual report on Form 10-K and our most recent quarterly reports on
Form 10-Q. DreamWorks Animation is under no obligation to, and
expressly disclaims any obligation to, update or alter its
forward-looking statements, whether as a result of new information,
future events, changes in assumptions or otherwise.
SOURCE DreamWorks Animation SKG, Inc.