Dalian Wanda Group, which announced plans to purchase the TV production company in November, is expected to call off the deal as soon as Friday
The much-ballyhooed $1-billion deal to sell Dick Clark Productions to China’s Dalian Wanda Group is headed for collapse, said three people familiar with the matter who were not authorized to speak publicly.
Wanda, which announced plans to purchase the TV production company in November, is expected to call off the deal as soon as Friday, said one of the knowledgeable people.
Representatives from Dick Clark Productions and Wanda declined to comment.
The acquisition of Dick Clark, which produces the Golden Globe Awards broadcast and Academy of Country Music Awards, would’ve marked Wanda’s first foray into television, adding to its formidable arsenal of film and cinema assets.
But a confluence of problems prevented the deal from closing. Roadblocks are said to include the Chinese government’s clampdown on the movement of capital out of the country and Wanda’s hesitation over the purchase price amid the struggles of Legendary Entertainment, which it acquired last year.
There have been growing concerns within Wanda and the government that the company would be vastly overpaying for Dick Clark, which is controlled by Eldridge Industries. A group of investors led by Guggenheim Partners bought it for $380 million less than five years ago.
Wanda, the Beijing-based real estate and media company that owns AMC Theatres, has displayed a tendency to pay hefty sums for entertainment companies.
Last year it announced a $3.5-billion purchase of Legendary Entertainment, the Burbank production company that backed the “Dark Knight” and “Hangover” films. But Legendary has since struggled. It recently co-produced “The Great Wall” and “Warcraft,” which were disappointments. Legendary Chairman and Chief Executive Thomas Tull resigned in January, leaving Wanda film executive Jack Gao in charge as its interim chief.
Gao, chief executive of international investments and business developments for the Wanda Cultural Industry Group, was a key player in orchestrating the Dick Clark deal with Eldridge CEO Todd Boehly.
Wanda had hoped that buying Dick Clark would have given the Chinese company control of popular awards shows, including the Golden Globes. But the reality proved to be more complicated. Although Dick Clark Productions has the rights to produce the broadcast of the ceremony, the awards themselves are controlled by the Hollywood Foreign Press Assn., limiting Wanda’s influence.
Other factors also held up the closing. Signs emerged in February that Wanda, run by billionaire Wang Jianlin, was having trouble getting its capital out of China to pay for Dick Clark. Chinese companies have faced increasing hurdles as the government tries to curb the flow of money pouring out of the country.
The government clampdown has potentially far reaching consequences for Hollywood, which is relying more and more on China to help fund its films. Paramount Pictures this year secured a film financing deal from Shanghai Film Group and Huahua Media. Government scrutiny recently resulted in Chinese copper company Anhui Xinke New Materials scrapping plans to buy "The Hurt Locker" producer Voltage Pictures for $350 million.
Chinese officials, fearful last year of falling currency values, tightened restrictions on capital leaving the world's second-largest economy. The government stepped up oversight of foreign acquisitions and tried to curb "irrational" outbound investments. That made it more difficult for firms to receive permission to transfer yuan and close deals.
Protectionist rhetoric by the Trump administration and Washington lawmakers has added to the anxiety over U.S.-China deal making. Several prominent politicians including Senate Minority Leader Charles E. Schumer (D-N.Y.) have called on regulators to heavily scrutinize Chinese investment in U.S. industries, singling out Wanda’s entertainment investments.
Special correspondent Jessica Meyers contributed to this report.
Copyright © 2017, Los Angeles TimesAsia China Dalian Wanda Group Dick Clark Legendary Pictures Thomas Tull
- China's clampdown on foreign investments raises questions for Hollywood as Wanda's Dick Clark deal stalls
- Matt Damon's 'The Great Wall' tests appetite for U.S.-China moviemaking
- The second richest man in Asia just bought the production company behind the New Year's Eve celebration in Times Square
- Wanda acquires Dick Clark Productions for $1 billion
- U.S. Weighs Stricter Reviews for Media Acquisitions by Foreign Buyers
- Chinese billionaire Wang Jianlin makes aggressive moves in Hollywood
- China's Dalian Wanda Group in talks to buy Dick Clark Productions
- Miss America 2017: Atlantic City pageant down in the ratings
- Miss America 2017: Show returns to N.J. with a pageant first
- Wanda shuts China theme park for ‘upgrades’— just 19 months after opening
- Imax sets deal with Wanda for biggest China expansion yet
- RealD and Wanda ink deal for big 3D push in China
You might also like
- South Korea's president is removed from office as court upholds her impeachment
- He might not call it 'Trumpcare,' but the president will likely own any Obamacare replacement
- Acusado por un accidente mortal en Los Ángeles había sido deportado a México cinco veces
- Vivimos en un momento único en la Tierra, al menos en cuanto a minerales
- GOP Congressman Asks Why Men Should Have To Pay For Prenatal Care
- A Scientists' March On Washington Is A Bad Idea – Here's Why
- Milo Ventimiglia Doesn't Think There Needs To Be More 'Gilmore Girls' Episodes
- 'Game Of Thrones' Concert Might Have A Secret Bran Connection
- Gunslinging Woman Chases Drone After It Starts Filming Her Home
- Bernie Sanders Has A Plan To Win Back Trump Voters
- Behind Trump And Brexit Is A Dark Void At The Heart Of Globalization
- If Trump Wants To Win In The Muslim World, He Needs To Know This History
- Powerful South Carolina political consultant implicated in indictments of a veteran state senator
- Will Donald Trump get a second Supreme Court nomination?
- "Hazing" rituals await Supreme Court's "junior justice" Neil Gorsuch
- The hunt is on for Planet Nine. Here's how to join it
- Trump approves controversial Keystone XL oil pipeline
- Trump praises 'Fox & Friends,' renews old feuds in early morning tweets
- Rex Tillerson finally answers question from NBC News' Andrea Mitchell
- First Read's Morning Clips: The Latest in the Russia Investigation
- Spicer: 'I've let the president down'
- Russian President Vladimir Putin met with U.S. Secretary of State Rex Tillerson on Wednesday
- OMB Diriector Mick Mulvaney: Washington's 'a lot more broken' than Trump thought
- Trump attacks conservatives over failure of health care bill
- A very consequential week didn't go well for President Trump
- Health Care Showdown: Republicans look to go big or go home
- No deal on health care bill after conservatives meet with Trump
- CA gov on those supporting health bill: 'Their name is going to be mud'
- Give it to me straight, doc: Is Obamacare dying?
- First Read's Morning Clips: Waiting for CBO
- 14 People Share What's It's Really Like to Have An Ex Who Is Now Their In-Law
- The Internet Is Freaking Out About The Way This Chef Cuts Pizza
- Angels manager Mike Scioscia rethinks the use of his closer in tight games
- Chemistry onstage makes Faith Hill and Tim McGraw a top tour
- I’m Taking A Break From Social Activism And OMG I Need Like Everyone I Know To Read About This
- 5 'Fate Of The Furious' Moments So Unnecessary, They're Necessary
- Noah Cyrus Reveals Her Next Tattoo & Dishes On Her Famous Family
- The Lonely Island Tell The Story Of How 'Dear Sister' Came To 'SNL'
- 'Marketplace' is America's most popular business show. Now it has ambitious plans to expand
- United fiasco shows airlines' power over passengers — and how it might change
- 'I really did it for my daughters': L.A. radio host Wendy Walsh on why she spoke out against Bill O'Reilly
- Trump backs Fox News host Bill O'Reilly, but advertisers keep fleeing
- IFC swings for the comedy fences with Funny or Die's 'Brockmire'
- MGM to spend $1 billion for full control of the Epix movie service
- YouTube TV launches today. It has some cool features and some big drawbacks
- 'Boss Baby' to sack 'Smurfs,' and other box office predictions
- Meet the new faces aboard 'Mystery Science Theater 3000's' Satellite of Love
- Werner Herzog wouldn't live anyplace other than Los Angeles, 'the city with the most substance'
- 'A blemish on America': The arts world reacts to proposed cuts in Trump's budget
- Brian Grazer and Ron Howard's Imagine Entertainment is getting into the booming, competitive animation business
- Fox News faces another sexual harassment claim as Mercedes and Hyundai pull ads from 'O'Reilly Factor'
- Roman Polanski is denied latest bid to resolve 40-year-old statutory rape case