Dalian Wanda, the $16 billion private Chinese conglomerate that operates in the commercial real estate, culture and entertainment, and retail industries, has signed an agreement to purchase AMC Entertainment and its 5,048 screen North American theater chain for the sum of $2.6 billion.
Wanda has indicated that it will also spend an additional $500 million on theater renovations and technology upgrades.
To me, the acquisition just doesn’t appear to make much sense for Wanda. The rationales offered by Wanda’s billionaire chairman Wang Jianlin have so far been unconvincing, the following being representative of his statements:
“We want to be a big company, not just in China but in the world.”
“This transaction will help make Wanda a truly global cinema owner.”
If there were competitive advantages to becoming a...