Legendary Entertainment China Film Project Hit by Funding Delay
January 03, 2012, 9:16 AM ESTBy Rob Golum
Dec. 30 (Bloomberg) -- Legendary Entertainment, the film production company behind “Inception” and “Hangover,” will be unable to complete a $220.5 million fundraising for a Hong Kong movie venture through Paul Y. Engineering Group Ltd.
Efforts to raise the funds were “not sufficient to complete the placing,” making it unlikely the deal will close before a Dec. 31 expiration, Paul Y. Engineering said in a regulatory filing yesterday. The parties will discuss ways to revive the project in 2012, according to the filing.
The companies planned to make one or two major films a year for worldwide audiences, according to an August statement. The venture was to be 40 percent owned by Legendary and Legendary East management, 50 percent by Paul Y. and 9.9 percent by Huayi Brothers International Ltd. Paul Y. planned to fund its stake in Legendary East through share sales.
Foreign box-office receipts for U.S. film studios rose 20 percent in the third quarter to $6.53 billion, bucking the decline in revenue and ticket sales in the U.S. and Canadian theaters, according to Bloomberg Industries research.
Relativity Media LLC announced plans in August to make and distribute films with Huaxia Film Distribution Co., one of China’s largest studios. DreamWorks Animation SKG Inc. is also considering expansion opportunities in China.
--Editors: Daniel Taub, Josh Friedman
To contact the reporter on this story: Rob Golum in Los Angeles at rgolum@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
