NEW YORK – Time Warner Inc. (NYSE:TWX) and China Media Capital (CMC), China's leading investment fund focused on media and entertainment, today announced the formation of a strategic investment partnership. The announcement was made in the western Chinese city of Chengdu, where top business leaders convened for the 2013 Fortune Global Forum.
The alliance pairs the world's leading video-focused content company, home of such businesses as Warner Bros., HBO, and Turner Broadcasting, with the preeminent investment platform in China dedicated to the media and entertainment sector. The goal of the partnership is to capitalize on China's rapidly expanding media sector as digital devices proliferate and China's demand for high-quality content across multiple platforms rises.
"This partnership with CMC and Ruigang Li will give us a unique window into one of the world's largest and fastest growing media and entertainment markets," said Time Warner Chairman and CEO Jeff Bewkes. "Increasing our global presence is one of Time Warner's strategic priorities and China is one of the most attractive territories in which we operate, but it is complex. This alliance will give all our businesses a savvy and accomplished partner as we strive to bring our leading brands and storytelling to people everywhere, across a wide range of devices."
"China's media and entertainment industry is undergoing a profound change on various fronts including technology, creativity and commercialization." said Ruigang Li, Chairman of CMC. "We are privileged to be at the forefront of these unprecedented opportunities as well as challenges. We are pleased to forge this partnership with Time Warner, a global power of television, film, and digital content, to jointly explore innovative ways of creating premium content for the new generation of consumers at the age of Internet and mobile, which will further contribute to the dynamic industry development in China."
The Chinese media and entertainment market is among the largest and fastest growing in the world. Box office revenue is projected to reach $4.4 billion in 2013, and with an estimated 45% compound annual growth rate (CAGR) between 2009 and 2013. Animation revenues are projected to reach $7.1 billion in 2013, with a 27% CAGR over the same period, and online video revenues are projected to reach $2 billion in 2013 with a 64% CAGR between 2009 and 2013.
CMC Founding Chairman Mr Ruigang Li founded CMC as China's first media and entertainment-focused investment fund in 2010. CMC's investment portfolio has participated in several investments and transactions including DreamWorks Animation's Chinese joint venture and CMC's acquisition of Star China from News Corporation. Mr. Li was previously the chief executive of Shanghai Media Group, where he was credited successfully transforming the Shanghai based provincial broadcaster SMG into one of China's largest media conglomerates.
About Time Warner Inc.
Time Warner Inc., a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets.
China Media Capital (CMC) is China's first media sector focused fund dedicated to media and entertainment investments in China and internationally. Approved by China's National Development and Reform Commission (NDRC) for an initial fund size of RMB 5 billion, CMC's prominent founding partners include China Development Bank (CDB), one of China's largest financial institutions. CMC's investment portfolio includes stakes in OCJ, the #1 TV shopping channel in China, a joint venture share in Oriental DreamWorks together with DreamWorks Animation, a joint venture share in TVB China together with TVB, and a controlling stake in Star China, formerly News Corporation's China assets, including TV channels — Star (Xing Kong), Star (Xing Kong) International and Channel V (China) — as well as the Fortune Star movie library, which is the largest movie library across Asia.
China Media Capital