Social media giant Tencent is bucking the trend of Chinese companies avoiding Hollywood investments, buying a 5% to 10% stake in Skydance.
Shenzhen-based social media giant Tencent Holdings has acquired a minority stake in Los Angeles-based production company Skydance Media, the companies said Thursday, in a move that bucks the recent trend of Chinese companies avoiding Hollywood investments.
Tencent, which owns social apps such as WeChat and QQ, has purchased a stake of 5% to 10% in Skydance for more than $100 million, according to a person familiar with the deal who was not authorized to comment.
The deal gives Skydance, founded and by David Ellison (son of Oracle founder Larry Ellison), a powerful partner with massive reach among online consumers in China, the world’s second-largest movie market. Along with marketing prowess and capital, the investment gives Skydance access to Tencent’s expertise in the gaming industry, the companies said.
As part of the pact, Tencent will be able to invest in Skydance films, the companies said. Skydance, launched in 2010, is best known for blockbusters including the recent « Mission: Impossible » and « Star Trek » movies.
