Wanda pays $1b for Dick Clark TV com­pany

China Daily (USA) - - ACROSS AMERICA - By LI XIANG in Bei­jing lix­i­ang@chi­nadaily.com.cn

China’s Dalian Wanda Group an­nounced its en­try into the TV pro­duc­tion in­dus­try with the $1 bil­lion ac­qui­si­tion of US-based Dick Clark Pro­duc­tions, mark­ing a mile­stone in the prop­erty com­pany’s ex­pan­sion of its en­ter­tain­ment em­pire.

The deal also holds strate­gic sig­nif­i­cance for Wanda, since it will help lift its in­flu­ence.” Xiao Han, part­ner, En­tGroup Inc

The deal will give Wanda, owned by bil­lion­aire Wang Jian­lin, con­trol of the US com­pany that pro­duces var­i­ous award cer­e­monies, in­clud­ing the Golden Globe and Bill­board Mu­sic awards, as well as TV shows such as So You Think You Can Dance.

In­dus­try an­a­lysts said own­ing one of the iconic com­pa­nies in Hol­ly­wood will al­low Wanda to gain val­ued in­tel­lec­tual prop­erty rights in the TV in­dus­try that gen­er­ate sta­ble rev­enues and prof­its.

“The deal also holds strate­gic sig­nif­i­cance for Wanda, since it will help lift its in­flu­ence in the global en­ter­tain­ment in­dus­try,” said Xiao Han, a part­ner at Chi­nese en­ter­tain­ment re­search com­pany En­tGroup Inc.

The pur­chase is the lat­est ad­di­tion to Wanda’s grow­ing en­ter­tain­ment em­pire after its takeover of US cin­ema chain AMC En­ter­tain­ment for $2.6 bil­lion in 2012 and film stu­dio Le­gendary En­ter­tain­ment for $3.5 bil­lion ear­lier this year.

The deal also un­der­scored the trend of cash-rich Chi­nese in­vestors like Wang shift­ing away from the prop­erty sec­tor into the en­ter­tain­ment and sports in­dus­tries, where they see great growth po­ten­tial, an­a­lysts said.

“It high­lighted Wanda’s com­mit­ment to such a strat­egy as the prop­erty sec­tor is fac­ing a lot of risks and has reached a devel­op­ment ceil­ing. Yet the en­ter­tain­ment in­dus­try is ex­hibit­ing vast growth po­ten­tial,” Xiao said.

Dick Clark Pro­duc­tions, founded in 1957, owns tele­vi­sion rights to events rang­ing from Miss Amer­ica to the New Year’s count­down in New York’s Times Square.

In its state­ment on Fri­day, Wanda said the pur­chase will al­low it to gain top tele­vi­sion pro­duc­tion rights, which is a “com­ple­men­tary and co­or­di­nated devel­op­ment” for its cur­rent fo­cus on the film, tourism and sports in­dus­tries.

Wanda said it will re­tain the full man­age­ment of the US com­pany and has signed a long-term op­er­a­tion con­tract with the man­age­ment team.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.