Tencent buys minority stake in Hollywood company

Chinese internet giant Tencent Holdings has made an investment in Skydance Media, the Hollywood company behind the film "Terminator''.

Media reports put the stake at about 10 percent and the cost at about $100 million.

Chinese investment in Hollywood virtually stopped last year as the government cracked down on what it saw as irrational investments in foreign industries, including entertainment, by companies such as Dalian Wanda Group.

Skydance has produced sequels for long-running movie franchises including "Mission Impossible" and "Star Trek". Skydance TV launched in 2013 and has created eight series to date. The new partnership was announced on Thursday evening in Los Angeles.

The alliance will give Skydance access to Tencent's expertise in Asia and gaming to further build its presence in these markets, and allow Tencent to co-finance Skydance films, as well as to market, distribute, and merchandise in China. The partnership also supports collaboration in television, and interactive and virtual reality.

Skydance was founded by David Ellison, son of Oracle Corp co-founder Larry Ellison, in 2010. It has produced and financed 15 films, which have cumulatively grossed nearly $5 billion at the worldwide box office, including three "Star Trek" movies and a pair of "Mission: Impossible" titles.

Tencent chief strategy officer James Mitchell said, "Skydance is nurturing successful entertainment franchises, especially in the action and science fiction genres, which are particularly popular in China. We believe this partnership will support Skydance's expansion internationally, across media and into television production, and provide Tencent with attractive content that we can share with China consumers."