Wanda acquired Legendary Entertainment for $3.5 billion in January
Chinese conglomerate Dalian Wanda Group is looking for investors after acquiring Legendary Entertainment for $3.5 billion in January.
According to the Wall Street Journal, Wanda Group is looking to raise $1.5 billion from Chinese investors for its film unit that is valued at $5.36 billion.
Wanda Pictures comprises of Legendary as well as Wanda’s own movie-production business. The deal to buy Thomas Tull‘s Legendary – valued by analysts between $3 and $4 billion – gave Wanda majority ownership in a production company that has been part of the success of “Pacific Rim,” “Godzilla” and Universal Pictures’ “Jurassic World,” in which the company had a stake.
Legendary has “Warcraft” on its release schedule in May, as well as “Kong: Skull Island” coming out in 2017. Wanda’s own film production company had multiple hits in 2015, such as “The Ghouls” and the comedy “Goodbye Mr. Loser.” WSJ wrote that Wanda became China’s largest non-state producer and distributor of movies last year.
Wanda already owns AMC Theaters, the second largest movie theater chain in the U.S., and the Wanda Cinema Line, the No. 1 Chinese theater chain that is valued at $19 billion in the fastest-growing movie market in the world, China. In 2013 Wanda announced the construction of an $8.2 billion production studio in Eastern China.
On Jan. 11, the Dalian Wanda Group confirmed its $3.5 billion acquisition of a majority stake in Legendary Entertainment, giving the Chinese conglomerate a potential Hollywood cornerstone as it seeks to build a global entertainment powerhouse.
“The acquisition of Legendary will make Wanda Film Holdings Company the highest revenue-generating film company in the world,” chairman Wang Jianlin said.