BANGKOK — GMM Tai Hub, one of the nation's largest movie studios, announced it will disband today due to an internal dispute over taking the company public.
GMM Tai Hub, established in 2003 by the merger of three studios – GMM Pictures, Tai Entertainment and Hub Ho Hin – will cease operations on Dec. 31, according to a statement posted on its website.
“The GTH train must stop at this station, but it’s not the end," said CEO Visute Poolvoralaks at a news conference held this afternoon at GMM's offices on Asoke Road. "There are a lot of paths to moving forward. I am thinking positively that three or four new GTHs might be born. And Thai movies will grow a lot more from this point on.”
The decision to close the studio follows an internal disagreement over Tai Entertainment’s decision to float an IPO and take the company public on the stock exchange, a move Hub Ho Hin was said to vehemently object to.
Hub Ho Hin “believes the company is not yet ready to enter stock market within the next one-to-three years,” the statement said, because doing so may create financial pressures that would adversely affects the company’s creativity and work quality.
“Every side has tried to initiate dialogue and negotiation to find a solution for a long time, but cannot reach a conclusion on the shared objective of the company,” the statement said. “Therefore, we unanimously agree that if our works continue without finding a conclusion, it will cause damages to all sides involved.”
Managing Director Jina Osotsilp said Hub Ho Hin was not ready for what the studio wanted to do.
“To do business in the market, it is very necessary to feel that we are ready," she said. "Hub might not ready to face that much pressure."
All filming projects that are still under production will still be screened in 2016 under the GTH name, it continued, adding that GMM Grammy will hold rights over the films until each former subsidiary appoints their own representatives to manage the rights.
The sudden announcement came as a surprise to many as GTH’s films – mostly feel-good romantic comedies – often dominate the box office. The corporation was founded by GMM, Tai Entertainment and Hub Ho Hin in 2003, following the huge success of nostalgia-inducing Fan Chan, which was co-produced by all three companies.
The studio’s hits in recent years include "ATM Errak Error," "Pee Mak," "Freelance," "May Who?" and TV series "Hormones."
Additional reporting Sasiwan Mokkhasen
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