DWG buys Legendary for $3.5bn

Chinese property and investment firm Dalian Wanda Group (DWG) has completed its acquisition of US film and TV producer Legendary Entertainment.

Legendary CEO Thomas Tull

DWG chairman Wang Jianlin, said to be China’s richest man, confirmed the deal at a press conference in Beijing today, describing it as “China’s largest cross-border cultural acquisition to date.”

It makes DWG the first Chinese firm to own a major Hollywood studio and highlights the country’s growing influence on the industry.

Reports emerged last week that Jianlin was close to taking a majority stake in the outfit as part of DWG’s plans to become a major player in the US entertainment industry.

The studio is behind recent blockbusters such as Jurassic World, Godzilla and Pacific Rim, which were well received at the box office in China.

DWG, meanwhile, already owns China’s biggest chain of cinemas and holds a majority stake in US movie theatre chain AMC.

DWG will own just over half of the company, with Legendary founder and CEO Thomas Tull and the rest of its management owning the remainder.

In October 2014 Legendary attracted US$250m investment from Japan’s Softbank for its push into TV, with its first TV content debuting at the LA Screenings last year.

So far its TV activities include current Syfy series The Expanse and USA Network’s 10-episode alien invasion drama Colony.

“There is an ever-growing demand for quality entertainment content worldwide, particularly in China, and we will combine our respective strengths to bring an even better entertainment experience to the world’s audiences,” said Tull.