Wanda Holds Talks to Acquire Lions Gate, MGM in Hollywood Push
2014-12-01 10:05:07.586 GMT
By Bloomberg News
Dec. 1 (Bloomberg) -- Dalian Wanda Group Co., which
controls the second-biggest U.S. cinema chain, is in talks to
acquire a stake in film studio Lions Gate Entertainment Corp.,
billionaire chairman Wang Jianlin said.
The Beijing-based company is interested in buying control
of Lions Gate, the studio behind the “Hunger Games” films,
although its owners have only been willing to sell a minority
stake, Wang said in an interview. Talks are at an early stage
and may not lead to a deal, he said. Wanda has also held
discussions about investing in Metro-Goldwyn-Mayer Inc., the
independent producer of James Bond films, Wang said.
Closely-held Wanda joins Alibaba Group Holding Ltd.,
China’s biggest e-commerce company, and billionaire Guo
Guangchang’s Fosun International Ltd. in seeking to invest in
the Hollywood film industry. Wang also said he wants to acquire
large theater networks in Europe as part of his ambition to
control 20 percent of the global cinema market by 2020.
“Many people come knock at my door, but Wanda is only
interested in the big players and we want control,” Wang said.
“China’s movie industry is booming at unprecedented speed.
Buying a well-known U.S. company will help our distribution
overseas.”
The 60-year-old Wang, who made his fortune developing
shopping malls and hotels in China, has a net worth of $15.1
billion, according to the Bloomberg Billionaires Index.
Culture Shift
Wanda said in August it plans to invest $1.2 billion to
develop a plot of land in Beverly Hills, California, and will
set up an office there to do deals in Hollywood. Wang held an
Oct. 8 meeting in Beijing with Lions Gate chairman Mark
Rachesky, the movie studio’s largest shareholder, according to a
news post on the Chinese company’s website. The release didn’t
say what the two men discussed.
Officials at Lions Gate and MGM didn’t immediately return
calls outside of regular business hours seeking comment.
MGM, which owns rights to “The Hobbit” film series, filed
for bankruptcy in 2010 after spurning a takeover bid from Lions
Gate and activist investor Carl Icahn. It emerged less than two
months later.
Wanda, which also runs department-stores, tourism
businesses and chain of movie theaters in China, acquired AMC
Entertainment in 2012 for $2.6 billion including debt to expand
into the U.S.
Wang’s quest to build a global movie empire comes as he
says China’s housing market has ended its period of rapid
growth, after expanding at an “unhealthy, crazy” rate over the
past few years. Property prices will remain “stable,” and the
housing market will grow at the same pace as the economy over
the next 10 to 15 years, he said.
“We are shifting our group’s focus toward culture,
entertainment and e-commerce,” Wang said. “China’s movie
industry is growing a lot faster than that of the U.S.”
Middle Class
Wanda would consider acquisitions of film studios larger
than Lions Gate if any come up for sale, according to Wang. It
is also in advanced talks to buy a Chinese Internet finance
company, he said without naming the target.
Fosun, the Shanghai-based company that invested $200
million in Jeff Robinov’s Studio 8 in June, has also held talks
to invest in Lions Gate, people with knowledge of the matter
said last month. Alibaba visited Hollywood last month to learn
about movie studios and look for partners that would provide
better entertainment products for China’s 200 million people in
the middle class, founder Jack Ma said at an Oct. 27 conference.
Wanda said last year it plans to invest 50 billion yuan
($8.1 billion) to build an entertainment park in Qingdao, a
coastal city in eastern China, that will include a movie museum
and 20 studios scheduled for completion in 2017.
For Related News and Information:
China Billionaire Buys L.A. Land for Foray Into Hollywood Films
Alibaba Said to Seek Hollywood Movie Deals in Race for Content
Dalian Wanda Commercial Said to Prepare $6 Billion Hong Kong IPO
Chinese Tycoon Guo Copying Buffett Rises From Bread to Club Med
Lenovo Heeds Jiang’s ‘Go Out’ Call in Second China M&A Wave
Top Stories:TOP<GO>
To contact Bloomberg News staff for this story:
Zijing Wu in Hong Kong at +852-2977-4819 or
zwu17@bloomberg.net;
Christine Hah in Beijing at +86-10-66497504 or
chah@bloomberg.net;
Stephen Engle in Beijing at +86-10-6649-7582 or
sengle1@bloomberg.net
To contact the editors responsible for this story:
Philip Lagerkranser at +852-2977-6626 or
lagerkranser@bloomberg.net
Ben Scent
2014-12-01 10:05:07.586 GMT
By Bloomberg News
Dec. 1 (Bloomberg) -- Dalian Wanda Group Co., which
controls the second-biggest U.S. cinema chain, is in talks to
acquire a stake in film studio Lions Gate Entertainment Corp.,
billionaire chairman Wang Jianlin said.
The Beijing-based company is interested in buying control
of Lions Gate, the studio behind the “Hunger Games” films,
although its owners have only been willing to sell a minority
stake, Wang said in an interview. Talks are at an early stage
and may not lead to a deal, he said. Wanda has also held
discussions about investing in Metro-Goldwyn-Mayer Inc., the
independent producer of James Bond films, Wang said.
Closely-held Wanda joins Alibaba Group Holding Ltd.,
China’s biggest e-commerce company, and billionaire Guo
Guangchang’s Fosun International Ltd. in seeking to invest in
the Hollywood film industry. Wang also said he wants to acquire
large theater networks in Europe as part of his ambition to
control 20 percent of the global cinema market by 2020.
“Many people come knock at my door, but Wanda is only
interested in the big players and we want control,” Wang said.
“China’s movie industry is booming at unprecedented speed.
Buying a well-known U.S. company will help our distribution
overseas.”
The 60-year-old Wang, who made his fortune developing
shopping malls and hotels in China, has a net worth of $15.1
billion, according to the Bloomberg Billionaires Index.
Culture Shift
Wanda said in August it plans to invest $1.2 billion to
develop a plot of land in Beverly Hills, California, and will
set up an office there to do deals in Hollywood. Wang held an
Oct. 8 meeting in Beijing with Lions Gate chairman Mark
Rachesky, the movie studio’s largest shareholder, according to a
news post on the Chinese company’s website. The release didn’t
say what the two men discussed.
Officials at Lions Gate and MGM didn’t immediately return
calls outside of regular business hours seeking comment.
MGM, which owns rights to “The Hobbit” film series, filed
for bankruptcy in 2010 after spurning a takeover bid from Lions
Gate and activist investor Carl Icahn. It emerged less than two
months later.
Wanda, which also runs department-stores, tourism
businesses and chain of movie theaters in China, acquired AMC
Entertainment in 2012 for $2.6 billion including debt to expand
into the U.S.
Wang’s quest to build a global movie empire comes as he
says China’s housing market has ended its period of rapid
growth, after expanding at an “unhealthy, crazy” rate over the
past few years. Property prices will remain “stable,” and the
housing market will grow at the same pace as the economy over
the next 10 to 15 years, he said.
“We are shifting our group’s focus toward culture,
entertainment and e-commerce,” Wang said. “China’s movie
industry is growing a lot faster than that of the U.S.”
Middle Class
Wanda would consider acquisitions of film studios larger
than Lions Gate if any come up for sale, according to Wang. It
is also in advanced talks to buy a Chinese Internet finance
company, he said without naming the target.
Fosun, the Shanghai-based company that invested $200
million in Jeff Robinov’s Studio 8 in June, has also held talks
to invest in Lions Gate, people with knowledge of the matter
said last month. Alibaba visited Hollywood last month to learn
about movie studios and look for partners that would provide
better entertainment products for China’s 200 million people in
the middle class, founder Jack Ma said at an Oct. 27 conference.
Wanda said last year it plans to invest 50 billion yuan
($8.1 billion) to build an entertainment park in Qingdao, a
coastal city in eastern China, that will include a movie museum
and 20 studios scheduled for completion in 2017.
For Related News and Information:
China Billionaire Buys L.A. Land for Foray Into Hollywood Films
Alibaba Said to Seek Hollywood Movie Deals in Race for Content
Dalian Wanda Commercial Said to Prepare $6 Billion Hong Kong IPO
Chinese Tycoon Guo Copying Buffett Rises From Bread to Club Med
Lenovo Heeds Jiang’s ‘Go Out’ Call in Second China M&A Wave
Top Stories:TOP<GO>
To contact Bloomberg News staff for this story:
Zijing Wu in Hong Kong at +852-2977-4819 or
zwu17@bloomberg.net;
Christine Hah in Beijing at +86-10-66497504 or
chah@bloomberg.net;
Stephen Engle in Beijing at +86-10-6649-7582 or
sengle1@bloomberg.net
To contact the editors responsible for this story:
Philip Lagerkranser at +852-2977-6626 or
lagerkranser@bloomberg.net
Ben Scent