More Coverage on Weinstein Asian Fund

More information on the Weinstein Company Asian Film Fund previously mentioned here. More details surfaced on specific business operations and projects. What quality of films can we expect to see out of this new endeavor?

Asian Star from America

Asian American actors continue to make breakthrough in the international spotlight. This article from LA Times introduced me to actor Daniel Henney. Henney is an American-born Korean from Michigan. A few years ago he went to Korea for a TV commercial and now he has become a full-fledged star around Asia. Looks like he's taking a space right next to Takeshi.

He's not the first Asian star from the West. There are Daniel Wu, Wang Lee Hom, Maggie Q, Karen Mok, and many more. What’s particularly interesting about Henney’s career is that he has made one by playing a genuine Asian-American. He plays the role of the outsider in Korea TV dramas and feature films. It’s refreshing and a breakthrough. I don’t know if a American-born Chinese would be able to achieve the same level of success in China playing the ABC.

Anyway, I look forward to seeing how his career grows and if he can take the “pretty boy” idol status his fame currently depends upon and really run with it. Will he be a worldwide star?

Asian Film Funds

Two news articles about Asia-focused film funds. The first article on the A3 film fund reported by Variety and the second article on the Weinstein Co.’s $285 million Asia fund reported by Bloomberg. Both articles informative and brief with enough details to give the strong impression that Asia-focused film funds will continue to sprout in the short term. As Felix Zhang of Artesian Capital Management says in the article, these types of films funds are exotic and unproven. However they are appealing as the movie industry across Asia is growing where box office in North America is shrinking. Asia is still developing and there’s still room here for more competition.

Daniel Wu "Heavenly King" Interview

Just finished reading this interesting interviewing with Daniel Wu on indieWIRE. It’s an interview that took place at the end of April during the SF International Film Festival. Daniel’s directorial debut, THE HEAVENLY KINGS made its stateside premiere at SFIFF.

Daniel is a Bay Area native and attended UC Berkeley. (Go Bears!) The interview nicely touches on the state of HK and Chinese film industries as well as the music industry in Asia. Also featured in the interview are Daniel’s co-stars in the film, Andrew Lin, Conroy Chan, and Terence Yin.

Private equity continues play in film business

A recent article in Variety reported that Lionsgate, the mini-studio, has just announced a slate of 23 films in a financing deal worth $400 million over the next 3 years. This is a big commitment for the studio and highlights its ability to produce mid-range fare at a conservative risk profile.

A couple things I find interesting from this article:

1. Goldman Sachs was involved in arranging financing. GS is no stranger to large-scale film business deals. They had a hand in the Weinstein Company $1 billion capital fundraising, the $2.1 billion purchase of Alliance Atlantis (included a 50% stake in the CSI franchise) and the $3.6 billion purchase of Endemol. GS is obviously committed to the industry. And its deep commitment show that the glow of Hollywood has not dulled. At a time when large studios such as Disney, Universal, Warner Bros., Sony, etc. have reduced their production slates, it’s interesting to note the rise of private equity players into the market.
2. Lionsgate most profitable franchises are excluded from this deal. I’ve always wondered why private equity gets in the game if only to participate in new and unproven titles. True, original titles can lead to big box office results. In addition, original titles are fresh. However, how can the studios keep the most profitable and guaranteed franchises to themselves and only open the doors to equity for their slates of original titles. For private equity, it seems risky. However, Lionsgate has proven its track record over time, particularly with the Saw and Tyler Perry franchises. It’s a wait and see scenario to see how these equity plays will pay off for firms like Goldman. But my bet is that with their business expertise, GS has not entered the market without substantial research and at least a sense of guaranteed returns on the backend.

Overall there is a glut of available money available in the market. That’s great for films and filmmakers. And it also provides a nice way for financiers to get into the sexy business of Hollywood. I say, “Play on!”