Daily Management Review

The richest man in China decided to buy the oldest Hollywood studio


Dalian Wanda company, owned by China's richest man Wang Jianlin, entered into talks to buy 49% of the Hollywood film studio Paramount Pictures, according to The Wall Street Journal.

Development Group Dalian Wanda, owned by China's richest man Wang Jianlin, entered into negotiations with the US media conglomerate Viacom to buy 49% of the oldest Hollywood studio Paramount Pictures, according to The Wall Street Journal referring to informed sources. One of the interlocutors said to the edition that apart from Dalian Wanda, there are another bidder who prefers to remain anonymous. 

According to the WSJ, billionaire Sumner Redstone, who owns a controlling stake in Paramount is against sale of the company’s shares. The deal is promoted by the studio’s management, including its general director Philip Doman.

One of the sources said that Viacom is relying on the fact that Paramount's capitalization after the sale would range from $ 8 to $ 10 billion. The studio this year was ranked fifth among the six Hollywood majors on fees from rentals in the United States.

The deal with Paramount would expand the presence of Wang Jianlin in Hollywood. In January, he bought for $ 3.5 billion studio Legendary Entertainment, which has released the latest hit movies "Warcraft" and "Godzilla".

Wanda also controls the second largest network of American cinema, AMC Entertainment, which this week offered to buy the largest European Odeon cinema chain for $ 650 million.

The Chinese company is also investing in sports marketing. Last year, Dalian Wanda acquired an organizer of the triathlon series competition "Ironman" for $ 650 million. In March this year, it became a sponsor of FIFA, signing a contract until 2030, and in July it became known that Jianlin intends to create a tournament that would compete with the UEFA Champions League. The championship will include the strongest teams of five most popular European football championships - English, German, Spanish , Italian and French. 

source: wsj.com