×
You will be redirected back to your article in seconds

China’s Recon Abandons Millennium Takeover Deal

Chinese media investment firm Recon Holdings says that it has dropped its bid to acquire a controlling stake in Avi Lerner’s Millennium Films. Recon said that certain conditions had not been fulfilled by the Aug 31 deadline.

The $100 million deal for 51% of Millennium was announced in February, by Recon a sprawling conglomerate that also owns the English soccer club Aston Villa. The deal announced covered Millennium’s library and gave Recon the option to buy out the outstanding 49% of Millennium shares at a later date.

In a regulatory filing made on Thursday, Recon said that the ending of the deal had been a mutual decision and that they two may continue to seek a strategic cooperation. Despite the friendly words, there are strong reasons to suspect that the deal is yet another casualty of the tightening regulatory environment in China. Other deals to collapse under increasing Chinese scrutiny include Wanda’s bid to buy Dick Clark Productions and Xinke’s attempt to buy Voltage Entertainment.

After several months of creeping regulatory action against “exuberant” and “irrational” dealmaking, the Chinese government this month spelled out clearly new controls for foreign investments by Chinese companies. Restricted categories include acquisitions in sectors including film, entertainment, sports clubs and hotels.

 

More Biz

  • Deborah Dugan

    Reports of Ousted Grammy Chief Demanding $22 Million Are 'Outrageous,' Sources Say

    UPDATED: As the war of words between the Recording Academy and ousted president/CEO Deborah Dugan continues to escalate, interim boss Harvey Mason Jr. today issued a statement to the Academy’s membership about Dugan’s alleged misconduct and warned about “leaks and misinformation.” The letter claims that Dugan’s attorney Bryan Freedman sought “millions of dollars” for his [...]

  • Frontrunners Emerge As BBC's Tony Hall

    Frontrunners Emerge as BBC Boss Tony Hall Set to Leave Broadcasting Behind

    As the U.K. industry reacts to news of Tony Hall’s intention to depart the BBC this July, top-level executives including Charlotte Moore and Tim Davie as well as external contenders such as Channel 4’s Alex Mahon are beginning to emerge. Variety understands that Lord Hall, who has headed the BBC for seven years as director [...]

  • Recording Academy President/CEO Deborah Dugan participates

    Executive Assistant Preparing Lawsuit Against Ousted Grammy Chief

    In the latest twist in the increasingly bitter exit of Deborah Dugan from the Recording Academy after just five months, the ousted president/CEO is about to face a lawsuit from her former assistant, Claudine Little, who has retained former Harvey Weinstein/ Charlie Walk attorney Patty Glaser to represent her, two sources tell Variety. The news was [...]

  • Two Rivers Media Buys Out Parent

    Two Rivers Media Buys Out Parent Kew Media Group's Stake In Business

    Two Rivers Media has bought out parent group Kew Media Group’s minority stake in the business. Formed by former STV Productions head Alan Clements in January 2019, the production outfit behind Channel 5’s recent “Susan Hill’s Ghost Story” launched with the backing of Kew, Noble Grossart Investments and Channel 4’s Indie Growth Fund. Noble Grossart [...]

  • Grammy Awards 60th Annual Grammy Awards,

    Recording Academy Paid Millions Annually to Outside Law Firms

    Among the concerns listed in a memo sent to the Recording Academy’s head of HR by president/CEO Deborah Dugan before she was placed on administrative leave Thursday was an item about the organization’s “exorbitant and unnecessary” legal fees to outside law firms, according to sources familiar with the document. According to the most recent 990 [...]

  • Chuck D of Public EnemyGods of

    Public Enemy’s Chuck D Slams Grammys Over Deborah Dugan Ouster

    Chuck D, frontman of Public Enemy — who are receiving the Lifetime Achievement Awards at the Grammys next week — posted a long statement on Instagram criticizing the Recording Academy over its sudden ousting of new president/CEO Deborah Dugan yesterday. Dugan, who had been in the job only five months, was placed on administrative leave after [...]

More From Our Brands

Access exclusive content