Wanda Scraps $5.6 Billion Reorganization of Entertainment Assetsby
Billionaire Wang Jianlin’s Dalian Wanda Group Co. shelved a $5.6 billion reorganization of its entertainment assets, saying the plan was premature and that market conditions had changed.
In May, Wanda Cinema Line Co. said it would buy Legendary Entertainment and Chinese film-making assets from the parent group for 37.2 billion yuan ($5.6 billion). On Monday, Wanda Cinema said in a statement in Shenzhen that the deal wouldn’t be in the best interest of minority investors. The company may reconsider the restructuring plan after this year, it said.
Wanda Cinema said the offer was premature. For example, closely held Legendary, the Hollywood producer of the recent "Warcraft" movie, should show its ability to turn profitable on its own before getting folded into Wanda Cinema, according to the statement.
The aborted plan would leave Wang’s entertainment businesses scattered. Besides Wanda Cinema and Legendary, the Chinese mogul controls U.S. theater-chain operator AMC Entertainment Holdings Inc. and theme parks in China as he seeks to build an empire able to challenge Walt Disney Co. by the end of the decade.
Wanda Cinema fell 0.8 percent to close at 70.80 yuan in Shenzhen on Monday before the announcement was made.