Although the U.S. government has expressed concerns about Dalian Wanda Group’s aggressive investment in Hollywood, the Chinese company would still put up an investment fund. The multibillion-dollar investment fund would provide capital to the Big Six studios in Hollywood.
Actually, Wanda’s Wang Jianlin, chairman of company and the richest man in China, wants to purchase one of the studious as part of his conglomerate’s global entertainment strategy. But he is aware of the potential barriers right now, so for the meantime, he is content with getting one foot inside Hollywood by setting up the investment fund, China Daily reported.
He admits to The Hollywood Reporter that acquiring a major studio now is uncertain. “I might as well start from wherever I can, such as through investment with all six,” he figured out. However, Dalian Wanda would still work on a potential buy-in.
Wang conceded, “Participating via investment seems like a wise choice for the time being.” It would shield Dalian Wanda from congressional oversight, Schuyler Moore, partner at Stroock & Stroock & Lavan LLP, a corporate entertainment company, said.
Moreover, Moore pointed out that Hollywood, after all, has a history of being propped up by third party equity investments. Without those outside funds, producing movies would be a dying industry. He added that Matsushida Electric, or Panasonic, bought Universal Studios, and Sony purchased Columbia Pictures.
He said a letter in September from U.S. Congress Members to the Government Accountability Office asking for further action has no relevance. “I don’t think it raises any security concerns so I don’t think anyone will give a hoot,” Moore figured out.
On Friday, Wanda’s Wang Jianlin announced that Wanda Entertainment company would buy all of Dick Clark Productions for $1 billion, Reuters reported. The productions is behind the Golden Globe awards and Miss America pageants, adding to the Chinese entertainment giant’s recent buying spree which includes its purchase of Legendary Pictures in August.