The parent of Japanese electronics giant JVC has announced that it will invest more than $100 million in a new motion-picture production company to be headed by a former president of 20th Century Fox.
The joint venture, to be called Largo Entertainment, represents the first major move by a Japanese company in the production of high-budget Hollywood movies.Lawrence Gordon, the former Fox executive and producer of such films as "Field of Dreams," "Die Hard," and the new Sylvester Stallone movie "Lock Up," will co-own and run the new company.
Largo will finance the development and production of movies that will be distributed in the United States by one of the major Hollywood studios.
JVC is the U.S. arm of Victor Co. of Japan Ltd. Japan's Matsushita Electric Industrial Co. Ltd., which makes Panasonic and Technics products, owns 50.8 percent of Victor.
Victor will operate Largo through a new subsidiary, JVC Entertainment Inc.
Largo opened its doors Monday morning at Gordon's small office on the Fox studio lot. He said he would begin to fill staff positions this week and the company's first movie should be in theaters by late 1990.
"I want to make films that will play throughout the world," Gordon said. "Most things that play well here will play well overseas."
Gordon refused to specify how much JVC's initial investment would be, saying only that it will be "well in excess of $100 million." He said JVC also will make additional capital infusions in coming months.
At peak operation, Largo plans to make five to eight movies a year, with budgets mirroring those of the major studios, about $20 million a picture.
Gordon said that JVC approached him six months ago with the idea of developing an entertainment production company that would complement the company's vast production of VCRs and other electronic hardware.
Largo plans to expand "into all areas of the entertainment business" at a later date, JVC said in a statement.
"They want software," Gordon said. "And they want to learn the business." Creative decisions at Largo, Gordon said, will be made independently of JVC.
Gordon, the producer of more than 25 movies, served as president of 20th Century Fox from 1984 to 1986, where he oversaw such films as "Cocoon," "Jewel of the Nile," "Commando," "Aliens" and "The Fly."
His latest movie, "Lock Up," has been a box-office disappointment, but "Field of Dreams" was a commercial and critical hit. He produced the upcoming "Family Business," with Sean Connery, Dustin Hoffman and Matthew Broderick.
JVC is best known in the United States for creating the VHS videocassette format, now the industry standard. In addition to manufacturing audio, video and television hardware, JVC also is a leader in Japan's home video and record business.