10 August, 2012
On August 7, 2012 at a ceremony at the Shanghai Xuhui Riverside Planning Exhibition Hall, DreamWorks Animation SKG, Inc. (Nasdaq: DWA) signed an agreement with media fund China Media Capital, media conglomerate Shanghai Media Group and investment company Shanghai Alliance Investment Co, Ltd. to establish joint venture company Oriental DreamWorks, which is positioned as the leading China-focused family entertainment company. The Chinese companies will hold a majority stake of approximately 55% in Oriental DreamWorks and DWA will hold approximately 45%.
Oriental DreamWorks will initially be capitalized with cash and intellectual property valued at US$330 million. Oriental DreamWorks will engage in the development and production of high-quality original Chinese animated and live action content and will pursue business opportunities in the areas of live entertainment, theme parks, mobile, online, interactive games and consumer products. As one of the largest international investment projects in China, the goal of Oriental DreamWorks is to become a world-class global entertainment leader and a leading promoter of Chinese culture around the world.
Simultaneously with the signing, the parties, together with Xuhui District government, announced their intention to develop and establish the "DreamCenter", an integrated cultural and entertainment tourist destination, in Shanghai. With a planned investment exceeding RMB 20 billion, the "DreamCenter" will be built on a T-shaped block in the waterfront area of Shanghai's Xuhui district and will incorporate theaters, cinemas, creative enterprises, restaurants and commercial facilities.
The Paul, Weiss team advising on the transactions included corporate partner Jeanette Chan, associate Peter Davies, former associate David K Lee, China law consultant Yuanyuan Zhou and paralegal Bianca Ip.
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