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Wednesday, January 28, 2015

China's Hunan TV to enter Hollywood in deal with Lions Gate, (NYSE: LGF)

China's Hunan TV & Broadcast Intermediary Co Ltd has agreed a deal with U.S. studio Lions Gate Entertainment Corp that will see the two firms invest a combined $1.5 billion in film making, marking the latest inroad by a Chinese firm into Hollywood. Cooperation will include film production and distribution, the Hunan-based media company said on Wednesday in a Chinese language statement on the Shenzhen stock exchange.Lions Gate, known for producing movies such as "The Hunger Games", and Hunan TV plan to invest the $1.5 billion within three years.The U.S. firm will also help distribute Chinese films produced by Hunan TV in overseas markets, according to the agreement.The Hunan firm, which owns a film making unit in Hong Kong, plans to set up a unit in the United States as well to step up its presence there.

Lions Gate Entertainment Corp. (Lionsgate) is a global entertainment company with a diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales. Shares of LGF fell by 0.89% or $-0.26/share to $29.06. In the past year, the shares have traded as low as $24.54 and as high as $35.75. On average, 1140390 shares of LGF exchange hands on a given day and today's volume is recorded at 40038.