What is "parufamet"

Parufamet was the name of the distribution company founded between the American film studios Paramount Pictures and Metro Goldwyn Mayer who together loaned $4 Million (US) to Universum Film AG (Ufa) in December 1925. The German studio Ufa financed the production of several expensive silent films including Metropolis (1927), and had gone bankrupt as a result. In return for the loan, Ufa had to reserve 75% of its cinema capacity for American productions and was obliged to distribute 20 films from each partner per year in Germany.