The Lesbian - based on the story of Cecil Chao - is set to star Baron Cohen, who will produce the Paramount Picture film through his company Four By Two.
Baron Cohen's latest movie The Dictator made $177m (£109m) worldwide.
He is currently working on a 007 spoof.
According to Variety, the untitled film - also for Paramount - follows a James Bond-like spy who goes on the run with his football hooligan brother.
The Lesbian has yet to announce a writer.
In September, shipping magnate Cecil Chao publicly promised the huge sum of money after reports emerged that his businesswoman daughter, Gigi, had married her long-term girlfriend in France.
Mr Chao rejected the rumours of a civil partnership, and told the BBC his daughter was still single and needed a "good husband".
Same-sex unions are not recognised in Hong Kong, although homosexuality was decriminalised in 1991.
Baron Cohen will next be seen as innkeeper Thenardier alongside Hugh Jackman and Russell Crowe in the all-star film adaptation of the long-running West End hit Les Miserables.
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