Dick Clark Production has been responsible for more than 50 years now for numerous popular TV shows. The Company produced American Music Awards, So You Think You Can Dance? and many others. As of September 2016, it was reported that Wanda Group was negotiating a purchasing act with the American entertainment production company. The Chinese conglomerate is the biggest private property developer in the world. The company was on the verge of respecting its part of the negotiations when a deal collapse put an end to it.
The Deal Collapse and New Lawsuit
In November, the Chinese entertainment group made an official announcement. According to this, it was ready to buy Dick Clark Production. The transaction would have settled the first entrance in the Hollywood realm of a representative of China.
However, what started off as a sure contract eventually ended up as a deal collapse. On Friday, the parent of Dick Clark Production, Eldridge Industries, announced the termination of the purchase act. As an explanation, the company stated that it was Wanda Group that didn’t meet its part of the deal. The Chinese conglomerate missed its deadline on working on its contractual obligations.
As a consequence, the Hollywood company is going to sue Wanda Group. Dick Clark Production found the Chinese conglomerate liable for the failure of the contract. As the document stipulated, the company was to receive certain funds before the deadline. Therefore, the company filed for a termination fee last week. For the time being, Wanda Group refused to comment the event.
Background of a Constraint Overseas Investment
On the other hand, the publication Bloomberg found a lead in this news. Reporters discovered that Wanda faced difficulties in sending the sum of money of up to $10 billion out of China in the projected accounts. The reason behind this must have been China’s turnaround as far as the overseas investments are concerned.
Based on the recently enriched portfolio of Wanda Group, few experts must have doubted the success of this latest transaction. During last years, the Chinese conglomerate was busy stocking up on such major acquisitions. For instance, the year of 2012 marked the change of ownership for AMC Entertainment Holdings, parent of AMC Theaters, a U.S. cinema chain. Moreover, in 2016 Wanda Group bought Legendary Entertainment for $3.5 billion. The media company was the maker of reputed productions such as Jurassic Park and the Batman trilogy.
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