Dalian Wanda Group Kills Dick Clark Productions Acquisition

Moonlight Golden Globe Win
Paul Drinkwater/NBC

UPDATED 3/10: Dick Clark Productions owner Eldridge Industries confirmed Friday morning that has “terminated its agreement” to sell the production company to Dalian Wanda Group for $1 billion.

ORIGINAL: Industry sources said Dalian Wanda Group chairman Wang Jianlin had pressed hard for the greenlight to complete the deal reached in November. Dick Clark Productions, owned by Eldridge Industries, was approached by Wanda earlier in the year. The surprisingly rich offer from Wanda forced Eldridge to open up an auction process on Dick Clark Productions even though no other contender came close to Wanda’s $1 billion bid.

The deal had been expected to close in February. The first sign of trouble came in late January. Industry insiders chalked it up to nervousness about the political climate for Chinese companies investing in the U.S. under the new Trump administration.

But it has also become increasingly clear that the Chinese government is taking steps to stop the capital flight that has seen major congloms like Wanda and Alibaba spend freely on acquisitions and joint ventures.

Reps for Wanda and Eldridge Industries declined to comment.

Dick Clark Productions is home to such awards show franchises as the Golden Globes, the American Music Awards and ACM Awards. It produces ABC’s annual “Dick Clark’s New Year’s Rockin’ Eve” special among other live events. The purchase of DCP would have given Wanda its first toehold in unscripted and live event production in the U.S. market.

Wanda in the past two years has acquired exhibition giant AMC Entertainment and Legendary Entertainment. Wang Jianlin said in January the company expected to spend $5 billion to $10 billion on acquisitions this year, most of it focused on entertainment and sports.

Dick Clark Productions was acquired by Guggenheim Partners for $370 million in 2012. The company changed hands again in 2015 when investor Todd Boehly left Guggenheim, taking DCP, the Hollywood Reporter, Billboard and other assets with him to the new Eldridge Industries banner.

(Pictured: 2017 Golden Globe Awards)

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 2

Leave a Reply

2 Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  1. ims says:

    @RS: Now if only American companies would do the same and stop stashing $2 trillion overseas. Wealthy elite of the US are moving their $$$ overseas. But that seems ok with you.

  2. RS says:

    GREAT NEWS! Now if only the Chinese government would now crack down on all the OTHER deals that have allowed their entitled elites to hide money in — and grossly overvalue — North American businesses and real estate. Once they stop this entertainment-acquisition farce, they should start looking into the obscene real estate buys happening in the major cities across the whole continent.

    Does anybody seriously wonder anymore why the “Chinese century” still hasn’t happened?

More TV News from Variety

Loading