DreamWorks unveils Shanghai plan

DreamWorks Animation officially unveiled plans to build a studio in Shanghai as a joint venture with China Media Capital, Shanghai Media Group and Shanghai Alliance Investment. Announcement was made as China's next leader, VP Xi Jinping is wrapping up his visit to the U.S. with a stop in Los Angeles this week. Oriental DreamWorks, which is being funded by $330 million in cash and other assets, will be based in Shanghai, with offices opening later this year. It will develop and produce original Chinese animated and live action content for distribution both within China and to other worldwide territories. Toon studio will also pursue business opportunities in the areas of live entertainment, theme parks, mobile, online, interactive games and consumer products. "We are incredibly proud to establish Oriental DreamWorks alongside CMC, SMG and SAIL in this groundbreaking and historic alliance to create the leading Chinese-branded family entertainment company," said DreamWorks Animation's CEO Jeffrey Katzenberg. "Together with our partners in China, we look forward to building a first-of-its-kind enterprise to locally conceive, produce and distribute high-quality creative content and family entertainment experiences - not only for the people of China but also for related export markets." Ruigang Li, chairman of China Media Capital said, "We share the same vision with DreamWorks Animation to build a world-class family entertainment company. By combining the expertise of CMC in investment and operation, SMG in media and entertainment management, SAIL in high-tech R&D, as well as DreamWorks Animation in creative processes, innovative technology and global network capabilities, Oriental DreamWorks will be in a unique position to create high-quality content and interactive entertainment products for China and international markets." The Chinese companies will hold a 55% stake in Oriental DreamWorks and DreamWorks Animation will hold approximately 45%. Deal comes as DWA successfully opened its "Kung Fu Panda" franchise in China. First pic was the No. 1 toon in China in 2008, while its sequel was the highest-grossing animated film in the region, grossing around $100 million. Contact Marc Graser at marc.graser@variety.com