Relativity Establishes Film Partnership in China

BEIJING: Relativity Media has joined forces with private-equity firm SAIF Partners and IDG China Media by investing in SkyLand Entertainment, a China-U.S. distribution company that will develop and produce films.

Relativity will distribute all of its future films in China through SkyLand. The company was jointly owned and controlled by SAIF Partners and IDG China Media, and is now also owned by Relativity. Films covered under the deal include Immortals, Haywire, Act of Valor, Relativity’s untitled Snow White project and The Raven. SkyLand will also invest in local film and TV production. SkyLand recently co-produced Snow Flower and the Secret Fan, a movie inspired by the novel by Lisa See.

"China is the fastest-growing film market in the world, with over 6,000 screens and over $1.5 billion in box office revenue last year, an increase of over 60 percent last year alone," said Ryan Kavanaugh, Relativity’s CEO. "We’re excited to be entering into this booming market with such great partners in SAIF, IDG and our new strategic partnership with Huaxia. Given the substantial platform created by SAIF and IDG in SkyLand, we believe together we can grow a distribution business in China which brings global product to China, and brings Chinese product to the global market."

Andy Yan, managing partner of SAIF and a large investor in SkyLand and Relativity, added, "The China entertainment industry has become one of the fastest and most lucrative industries in China today. Until now, there has been a major void in bridging the two worlds of the American and Chinese film industries. After spending significant time learning about Relativity’s business and how they approach the international markets, we couldn’t be more pleased to have entered into what will undoubtedly be a revolutionary shift in the China film business as we know it. Relativity’s business model has revolutionized the film business in the U.S., and this partnership will do the same for China."

Hugo Shong, founding general partner of IDG China Media and a co-financier of SkyLand, commented, "We couldn’t be more excited about creating this revolutionary partnership, and simultaneously entering into a strategic partnership with Huaxia, who has successfully distributed such films as Harry Potter, Transformers, Kung-Fu Panda, Fast Five, Prince of Persia: The Sands of Time, 2012, Alice in Wonderland, Sherlock Holmes and many others in China."