HOLLYWOOD, Calif.--(BUSINESS WIRE)--
Paramount Pictures and Huahua Media have mutually agreed to end their
slate financing agreement, which otherwise would have financed 25
percent of the Paramount film slate in fiscal 2017, 2018 and 2019,
following recent changes to Chinese foreign investment policies.
Paramount maintains its relationship with Huahua and looks forward to
exploring opportunities to work together in the future.
Paramount announced it has secured a series of individual agreements
with financing partners, including Hasbro Inc., Skydance Media and SEGA,
among others, that will provide committed or expected financing for
approximately 25 percent of the production costs of the studio's film
slate for fiscal 2018 and 2019.
Jim Gianopulos, Paramount Chairman and Chief Executive Officer, said,
"The actions we are announcing today establish a financing model that is
better aligned to Paramount's new strategic approach to film production.
Our focus on a more balanced slate - a mix of big, broad-audience films
and more targeted and co-branded films made with greater fiscal
discipline - demands a more flexible and tailored financing model going
forward. This structure positions us to capture more upside beyond 2019
as the new slate takes full effect."
The production financing Paramount has secured is weighted toward its
bigger budget films, allowing Paramount to capture greater upside on its
more modestly budgeted titles, where presently there is no third party
financing.
Viacom Inc. (NASDAQ: VIAB, VIA), the parent company of Paramount
Pictures, expects a negative net impact of $59 million in the fourth
fiscal quarter in connection with the termination of the Huahua
agreement. The Company will provide additional information regarding its
fourth quarter and full-year results during its regular quarterly
earnings call on November 16, 2017, following the release of its
earnings announcement.
About Paramount Pictures Corporation
Paramount Pictures Corporation (PPC), a global producer and distributor
of filmed entertainment, is a unit of Viacom (NASDAQ: VIAB, VIA), a
leading content company with prominent and respected film, television
and digital entertainment brands. Paramount controls a collection of
some of the most powerful brands in filmed entertainment, including
Paramount Pictures, Paramount Animation, Paramount Television, Paramount
Players, MTV Films, and Nickelodeon Movies. PPC operations also include
Paramount Home Media Distribution, Paramount Pictures International,
Paramount Licensing Inc., and Paramount Studio Group.
About Viacom
Viacom is home to premier global media brands that create compelling
television programs, motion pictures, short-form content, apps, games,
consumer products, social media experiences, and other entertainment
content for audiences in more than 180 countries. Viacom's media
networks, including Nickelodeon, Comedy Central, MTV, VH1, Spike, BET,
CMT, TV Land, Nick at Nite, Nick Jr., Logo, Nicktoons, TeenNick, Channel
5 (UK), Telefe (Argentina) and Paramount Channel, reach over 3.9 billion
cumulative television subscribers worldwide. Paramount Pictures is a
major global producer and distributor of filmed entertainment. Paramount
Television develops, finances and produces programming for television
and other platforms.
For more information about Viacom and its businesses, visit www.viacom.com.
Keep up with Viacom news by following Viacom's blog at blog.viacom.com
and Twitter feed at www.twitter.com/viacom.
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For Viacom
Chris Petrikin, 323-956-4420
Executive Vice
President, Global Communications and Corporate Branding
chris_petrikin@paramount.com
or
Investors:
James
Bombassei, 212-258-6377
Senior Vice President, Investor Relations
james.bombassei@viacom.com
or
Kareem
Chin, 212-846-6305
Vice President, Investor Relations
kareem.chin@viacom.com
Source: Viacom
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