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.
