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IMAX Corporation (IMAX - Free Report) through its subsidiary, IMAX China, has announced the completion of an agreement to form the IMAX China Film Fund. The fund will be launched in partnership with China Media Capital (“CMC”) and will have a starting capital of $50 million.
The newly launched fund is expected to co-finance around 15 Mandarin-language tentpole films over the next three years. The Chinese market is a lucrative and high growth area for the entertainment industry. This fund will further utilize the profitable trend with the strong network of exhibitors, studios, local distribution partners and content creators established by IMAX and CMC. Initially, the fund will target contributions between $3 million and $7 million per film. However, it is likely to bring in more investors eventually. It will operate under an IMAX-CMC greenlight committee.
IMAX expects this new fund to help in further establishing its brand in China and to build a strong network in the country emulating the one it has in Hollywood. The company wants to cater to the high demand of locally-produced blockbuster content. CMC, on the other hand, will benefit from the partnership as the high-end technology experience provided by IMAX will bolster growth of tentpole Mandarin-language films.
IMAX has been extensively expanding in China. The China Film Fund announcement was preceded with a string of deals recently signed by the company to strengthen its presence in the country. In June, IMAX has announced a 10 theatre deal with Sichuan Lumiere Pavilions Company Ltd. In May, the company had signed a 40 theatre deal with Guangzhou JinYi Media. It had also entered into an agreement with Shanghai Aurora Movie Co., Ltd. for the installation of 10 theatres across China. IMAX targets popular locations in major cities to promote customer growth. The company’s signings in China soared 171% year on year in the first quarter of 2016. The company remains focused on becoming a key player in the Chinese entertainment industry.
Zacks Rank and Stocks to Consider
IMAX currently sports a Zacks Rank #3 (Hold). Investors interested in the broader Consumer discretionary sector may consider stocks like Cable One Inc. (CABO - Free Report) and Cablevision Systems Corporation with a Zacks Rank #1 (Strong Buy) and MSG Networks with a Zacks Rank #2 (Buy).
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IMAX Inks Agreement to Form IMAX China Film Fund
IMAX Corporation (IMAX - Free Report) through its subsidiary, IMAX China, has announced the completion of an agreement to form the IMAX China Film Fund. The fund will be launched in partnership with China Media Capital (“CMC”) and will have a starting capital of $50 million.
The newly launched fund is expected to co-finance around 15 Mandarin-language tentpole films over the next three years. The Chinese market is a lucrative and high growth area for the entertainment industry. This fund will further utilize the profitable trend with the strong network of exhibitors, studios, local distribution partners and content creators established by IMAX and CMC. Initially, the fund will target contributions between $3 million and $7 million per film. However, it is likely to bring in more investors eventually. It will operate under an IMAX-CMC greenlight committee.
IMAX expects this new fund to help in further establishing its brand in China and to build a strong network in the country emulating the one it has in Hollywood. The company wants to cater to the high demand of locally-produced blockbuster content. CMC, on the other hand, will benefit from the partnership as the high-end technology experience provided by IMAX will bolster growth of tentpole Mandarin-language films.
IMAX CORP Price
IMAX CORP Price | IMAX CORP Quote
Expansion in China
IMAX has been extensively expanding in China. The China Film Fund announcement was preceded with a string of deals recently signed by the company to strengthen its presence in the country. In June, IMAX has announced a 10 theatre deal with Sichuan Lumiere Pavilions Company Ltd. In May, the company had signed a 40 theatre deal with Guangzhou JinYi Media. It had also entered into an agreement with Shanghai Aurora Movie Co., Ltd. for the installation of 10 theatres across China. IMAX targets popular locations in major cities to promote customer growth. The company’s signings in China soared 171% year on year in the first quarter of 2016. The company remains focused on becoming a key player in the Chinese entertainment industry.
Zacks Rank and Stocks to Consider
IMAX currently sports a Zacks Rank #3 (Hold). Investors interested in the broader Consumer discretionary sector may consider stocks like Cable One Inc. (CABO - Free Report) and Cablevision Systems Corporation with a Zacks Rank #1 (Strong Buy) and MSG Networks with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>