Erik Feig is launching an indie production banner, Arena SNK Studios, to expand the Hollywood producers reach in movies, TV, gaming and live events.

Feigs company says it has secured around $1 billion in financing backing for the new venture, which is led by backers in Saudi Arabia. Thats part of a step investment deal with a major tranche received up front, followed by the remaining funds coming as milestones are hit.

The financial stakes are coming from MBC Group, the Saudi-owned Middle East broadcasting giant and the largest media operation in the region,and SNK, the Japanese video game company now owned by MiSK Group, a foundation led by Saudi leader Mohammed bin Salman. The major Saudi stake in Arena SNK follows Saudi Arabia and its sovereign wealth fund quietly building a multibillion-dollar foothold in Hollywood and American sports in recent years as a gateway into the American market and a diversification from its oil-based riches.

Besides developing and producing blockbuster films and event TV series across live-action and animation, Arena SNK will also produce experiential events internationally. The venture will have on its board of directors as chair Majid Al-Ibrahim, who also sits on the MBC Group board, Feig, former Disney film chief Sean Bailey, Andreessen Horowitz general partner and AI investor Andrew Chen, and Epic Games CCO Charlie Wen.

Arena SNK aims to partner with major global studios and streaming platforms for distribution of its content. Feig, a former co-president of Lionsgates motion picture group, in 2019 launched Picturestart to create, co-finance and produce a entertainment content, will remain executive chairman of that standalone company.

His movie credits include La La Land, The Hurt Locker, Sicario and the Twilight and Hunger Games franchises.