Wanda signs cooperation agreement with Sony Pictures

Chinese conglomerate Wanda has agreed to invest in Sony Pictures in exchange for the US production firm highlighting Chinese involvement in its productions, Wanda said in a statement released Friday.

It is the first time a Chinese company has reached an indefinite collaboration agreement for investment with one of Hollywood biggest studios, said the statement.

Until now, cooperation between a Chinese firm and a Hollywood studio has been limited to small investments in particular films.

The pact takes ChinaHollywood collaboration to a new level, reflecting Wanda’s influence in the film industry.

Sony has been assured entry into the world’s most populated country, which has recorded an annual 30percent rise in ticket sales, and looks set to snatch the top position from the US next year.

The statement notes the alliance will help “strengthen” Wanda’s say in the global film industry and set a precedent for Chinese film producers wishing to invest overseas.

“As the global film industry continues to explode, Wanda will seek additional strategic alliances with content companies to foster international collaboration,” said Jack Gao, CEO of Wanda Cultural Industry Group.

The latest agreement falls in line with other recent activities by Wanda, which has shifted its focus to the film industry from real estate in recent years.

Operating the largest network of cinemas in China through its subsidiary Wanda Cinema Line (with over 2,500 screens in the country), it usurped the top position in 2013 when it acquired US cinema chain operator AMC, which has nearly 5,000 screens in North America.

In 2014, it bought Australian Hoyts the second largest operator in the Oceanic region and has put in a bid to purchase USbased Carmike this year.

In January this year, Wanda said it was acquiring Legendary Entertainment in the US, followed by the purchase announcement of of Europe’s Odeon & UCI in July.

Company chairman Wang Jianlin, one of China’s wealthiest, has emphasized his interest in consolidating Wanda in the entertainment sector.