×
You will be redirected back to your article in seconds

Paramount Loses Slate Financing Deal With China’s Huahua

Paramount Pictures and Huahua Media are ending their sprawling slate financing agreement, the film studio announced on Tuesday. The deal, once valued at $1 billion, was intended to finance a quarter of the films that Paramount produced over a three-year period.

Paramount cited recent changes to Chinese foreign investment policies as the reason for the dissolution. In recent months, China has applied greater scrutiny to foreign investments, and has worked to limit the outflow of capital in order to bolster its currency.

Paramount said it will fill the gap in financing through deals with Hasbro, Skydance Media, and SEGA. The pact has been on shaky ground for some time. Huahua had been unhappy with the financial performance of Paramount releases such as “Transformers: The Last Knight” and “Ghost in the Shell.” Last spring, executives at Viacom jetted to China to try to convince Huahua brass that their future films would be more successful. As the financing grew increasingly wobbly, Paramount and Viacom executives admitted at various points that Huahua had missed payments.

Jim Gianopulos, Paramount’s chairman and CEO, attempted to put a positive spin on the news, saying in a statement that the new deals give the studio a better opportunity to capture more of the profits from the films it makes. He noted that deals with the likes of Skydance will help finance the bigger budgeted releases, while Paramount will not enlist third party investors on its more modestly budgeted productions.

“The actions we are announcing today establish a financing model that is better aligned to Paramount’s new strategic approach to film production,” Gianopulos said in a statement. “Our focus on a more balanced slate — a mix of big, broad-audience films and more targeted and co-branded films made with greater fiscal discipline — demands a more flexible and tailored financing model going forward.”

The Huahua pact was forged roughly a year ago under Brad Grey, Gianopulos’ predecessor as studio chief. Gianopulos took over at Paramount in March. The studio has suffered a series of flops in recent months — a list of misses that includes “Suburbicon,” “Baywatch,” and “Mother!”

More Film

  • Josh Brolin, Kathryn Boyd. Josh Brolin,

    'Avengers: Endgame's' Josh Brolin: Thanos' Butt Is a 'Beautiful, Purple Peach'

    On the eve of “Avengers: Endgame’s” world premiere, everyone’s thoughts have turned to the one crucial detail that could be the difference between life or death for the Avengers: Does Thanos have a butt? “I don’t know what that whole thing is about! I really don’t!” Josh Brolin, who plays Thanos, told Variety‘s Marc Malkin [...]

  • Tessa Thompson'Avengers: Endgame' Film Premiere, Arrivals,

    'Avengers: Endgame's' Tessa Thompson Says Valkyrie Would Spoon Captain Marvel, Thor

    Tessa Thompson, who plays Valkyrie in the Marvel Cinematic Universe and upcoming “Avengers: Endgame,” had no problem addressing speculation about the character’s sexuality at the “Endgame” red carpet premiere Monday. The “Sorry to Bother You” actress explained that she played her Marvel character as bisexual. “In the canon, [Valkyrie] is bisexual. You see her with [...]

  • WGA Agency Packaging Fight Placeholder Writer

    Writers Guild Says Over 7,000 Members Have Fired Agents

    Over 7,000 members of the Writers Guild of America have fired their talent agents, the Hollywood union said on Monday. As promised, the guild delivered a first round of termination letters to agents in a show of support for the WGA’s full-on war with the Association of Talent Agents. “Today the Guild delivered a first [...]

  • BRAZILIAN FLAGFRENCH OPEN TENNIS, PARIS, FRANCE

    Brazil’s Ancine Freezes Incentives, Threatening Film-TV Industry Paralysis

    Brazil’s Ancine agency, its foremost public-sector source of film funding, has frozen all of its incentive programs, potentially near paralyzing new production in Latin America’s biggest film-TV industry. The dramatic decision, which has left Brazil’s industry is a state of shock and intense fear for its future, comes as it has taken further hits. In [...]

  • Jennifer Lopez

    Jennifer Lopez Reteams With STXfilms on Romantic-Comedy Co-Starring Owen Wilson

    Jennifer Lopez is reteaming with STXfilms on the upcoming romantic-comedy “Marry Me.” Kat Coiro is directing the film and Owen Wilson is in final negotiations to join the pic, which will likely shoot this fall. The script was written by John Rogers and Tami Sagher, with a rewrite by Harper Dill. Lopez and Wilson both [...]

  • Steve Golin The Revenant Spotlight Producer

    Steve Golin, Prolific Producer and Founder of Anonymous Content, Dies at 64

    Steve Golin, an Oscar-winning producer who was founder and CEO of Anonymous Content, died Sunday in Los Angeles of cancer. He was 64. Golin was a pioneer in blending the business of talent management with production. Anonymous Content, which Golin founded in 1999, worked with a stable of big name artists such as Steven Soderbergh, [...]

  • David Leitch Kelly McCormick

    'Hobbs & Shaw' Director David Leitch, Kelly McCormick Sign First-Look Deal With Universal (EXCLUSIVE)

    Universal Pictures is signing David Leitch, his longtime producing partner, Kelly McCormick and their recently founded 87North Production banner to a first-look production deal. “David and Kelly have established themselves as a distinctive, stylish filmmaking team who can do it all, from contained thrillers to franchise tentpoles,” said Universal’s president Peter Cramer. “We are confident [...]

More From Our Brands

Access exclusive content