Business
China's Wanda Cinema is continuing its Hollywood expansion.
Reuters reports:
Chinese tycoon Wang Jianlin's Wanda Cinema Line Corp (002739.SZ), the country's biggest cinemas operator, said on Thursday it plans to acquire movie-making affiliate Wanda Media for 37.2 billion yuan ($5.7 billion) in cash and shares. Wanda Cinema, whose parent Dalian Wanda Group acquired U.S. film studio Legendary Entertainment in January for about $3.5 billion, said in a filing with the Shenzhen stock exchange that it now aims to acquire Wanda Media, the current owner of Legendary Pictures. The company also said it plans to raise up to 8 billion yuan in a private placement of shares to help fund the building of theaters and replenish working capital. "The completed transaction will help the listed company set a global strategy in consolidating film assets at home and abroad," it said. In 2012 Dalian Wanda bought AMC Entertainment Holdings Inc (AMC.N), North America's second-largest cinema chain, for $2.6 billion. Wanda Cinema's shares will remain suspended since a halt on February 24.
On Wednesday Bloomberg wrote:
Wanda Cinema Line Co. agreed to invest in Paramount Pictures’ “Teenage Mutant Ninja Turtles: Out of the Shadows,” extending Chinese billionaire Wang Jianlin’s foray into Hollywood. The investment will be made through Wanda subsidiary Movie Media Group, according to a statement Wednesday. Financial terms weren’t disclosed. The film will be released in the U.S. on June 3. The deal is the latest example of Chinese funds flowing into Hollywood and builds on Wanda’s relationship with the studio. Wanda’s Movie Media Group/CMM Films previously invested in “Teenage Mutant Ninja Turtles,” “Terminator Genisys,” and “Mission: Impossible - Rogue Nation.” Last month, Alibaba Pictures Group Ltd. also pledged an investment in “Teenage Mutant Ninja Turtles: Out of the Shadows.” Paramount’s parent, Viacom Inc., said earlier this year it’s looking to sell a stake in the studio.
