Top executives of high-profile film studio GMM Tai Hub Co (GTH) have announced the business will close at the end of the year due to disagreements regarding business direction among the three shareholders.
GTH is 51% owned by GMM Grammy, 30% by Tai Entertainment and 19% by Hub Ho Hin Bangkok.
In its 11 years of operation, GTH produced many popular films such as Fan Chan and Pee Mak Phra Khanong, the latter the first Thai film to break 1 billion baht at the local box office and the highest-grossing Thai film.
It also produced the TV shows Hormones the Series and True Love Next Door.
This year, GTH had two successful films — Freelance, which earned 88 million baht, and May Who?, which pulled in 72 million baht.
Tai Entertainment wanted to list GTH on the stock market to raise funds for business expansion, while Hub Ho Hin thought the company was not ready for the listing.
Hub Ho Hin believes listing would put pressure on creativity and quality, which is the core focus of GTH.
After the disagreement intensified, the three partners realised the issue would affect business if they could not reach a solution. Therefore, they agreed to shut down the operation of GTH on Dec 31.
"Despite the decision to shut down, we're still good friends. It's the nature of doing any business. We think today's moviegoers will have more choices," Grammy chief executive officer Busaba Daoruang said.
GTH co-chief executive Jina Osothsilp said on behalf of Hub Ho Hin that her company was not ready to deal with more business pressure but still wanted to be involved in film-making.
She said her team plans to set up a new studio next month to make quality films in line with their determination.
Ms Busaba said Grammy was willing to join hands with Hub Ho Hin in its new movie studio.
But Tai Entertainment will move on to produce movies on its own.
A source confirmed Grammy would form a film studio venture with Hub Ho Hin, while a new partner, probably True Group, would be brought in to provide stronger financial backing.
The three-party partnership will be announced next January.
The source said the GTH channel, which airs GTH films on the satellite TV platform, will also close down soon.
The three shareholders at GTH agreed Grammy would manage all the rights for movies produced by GTH and that revenue would be shared among the three based on their shareholdings.
