(Feature) DreamWorks Animation SKG, Inc. (Nasdaq: DWA) announced that it has agreed to form a joint venture with China Media Capital (CMC), with plans to include Shanghai Media Group (SMG), the country's 2nd largest media conglomerate, and Shanghai Alliance Investment, Ltd. (SAIL), to establish the leading China-focused family entertainment company. Oriental DreamWorks will engage in the development and production of high-quality original Chinese animated and live action content for distribution both within China and to other territories around the globe. In addition to content creation, the joint venture will pursue business opportunities in the areas of live entertainment, theme parks, mobile, online, interactive games and consumer products.

The Chinese companies will hold a majority stake of approximately 55% in Oriental DreamWorks and DreamWorks Animation will hold approximately 45%. The enterprise will initially be capitalized with cash and intellectual property valued at $330 million. The joint venture plans to launch business operations in Shanghai later this year.

DreamWorks Animation has enjoyed a great track record of success at the box office in China, led by its blockbuster Kung Fu Panda franchise. Kung Fu Panda was the #1 animated film upon its release into China in 2008 and last year, Kung Fu Panda 2 became the highest-grossing animated film of all time in the region, grossing approximately $100 million.