Time Warner Inc. and China Media Capital (CMC), a Shanghai-based investment fund focused on media and entertainment investment in China, says they have agreed to establish a strategic investment partnership.
Time Warner will make a US$50 million capital commitment in China Media Capital.
The announcement was made in Chengdu during the 2013 Fortune Global Forum.
The goal of the partnership is to capitalize on China’s rapidly expanding media sector.
"China is one of the most attractive territories in which we operate, but it is complex," says Time Warner chairman and CEO Jeff Bewkes.
"China’s media and entertainment industry is undergoing a profound change on various fronts including technology, creativity and commercialization." says Ruigang Li, chairman of CMC.
The Chinese media and entertainment market is among the largest and fastest growing in the world. Box office revenue is projected to reach US$4.4 billion in 2013. It grew at around 45% compound annual growth rate between 2009 and 2013.
Animation revenues are projected to reach US$7.1 billion in 2013, with a 27% growth rate over the same period. Online video revenues are projected to reach US$2 billion in 2013 with a 64% growth rate between 2009 and 2013.
Ruigang Li founded CMC as China’s first media and entertainment-focused investment fund in 2010 with an initial fund size of RMB5 billion.
CMC’s investment portfolio includes DreamWorks Animation’s Chinese joint venture and CMC’s acquisition of Star China from News Corporation.
Li is the chairman and president of Shanghai-based Chinese media conglomerate Shanghai Media Group.