Diversification push
Since 2005, Dalian Wanda and other prominent Chinese real estate companies such as Evergrande have made numerous forays into "alternative, income-generating businesses away from the income-producing Chinese property market."[1] The Financial Times noted that Dalian Wanda was the "most aggressive" company in pursuing this strategy, pointing to its 2012 acquisition of American cinema chain AMC Theatres and 2013 purchase of British yachtmaker Sunseeker. It noted that it was also "building theme parks across China, and has a joint venture with Tencent and Baidu to set up an e-commerce platform".[13]
Dalian Wanda acquired the American cinema operator AMC Theatres in May 2012 for US$2.6 billion, the largest Chinese acquisition of an American company to that date.[14] The acquisition went through successfully in August 2012, making Wanda Cinemas the world's largest cinema operator.[15] As of 2016, Wanda owned approximately 6% of all commercial movie screens in China, and about 13% in the U.S.[15] The company made major changes in AMC theater design and layout, including generously sized reclining seats, waiter service, and expanded food and drink offerings. AMC's value more than doubled in the 18 months following the acquisition, and by the end of 2014 Wanda reaped a reported profit of about US$900 million. As of 2021, Dalian Wanda no longer has control of AMC.[15][16]
In June 2013, Dalian Wanda planned to invest $1.1 billion to develop a new five-star hotel in London next to the Thames River in Vauxhall, South London, as part of the Nine Elms regeneration.[1] Mayor of London Boris Johnson welcomed this move. The building was said to become "Western Europe's tallest residential building" until plans were scrapped in 2015.
In June 2013, Dalian Wanda acquired Sunseeker International, a British luxury yacht manufacturer used in the James Bond movies, for $500 million.[1] This acquisition gave Wanda a 92 percent stake in the company.[17]
In January 2015, Dalian Wanda purchased an office building in Sydney, Australia, from American alternative investment management firm Blackstone Group for around US$327 million.[18] The company is "aggressively expanding overseas to move away from China's property market, which has been hit by a slowing economy".[13]
In June 2015, Wanda Cinemas announced that it had acquired Australian cinema chain Hoyts.[7] In Chile it was acquired by Cinépolis, in Uruguay by Life Cinemas, and in Argentina by Cinemark.
In November 2015, an announcement was made regarding the formation of a holding company, Wanda Film Holdings, with the purpose of consolidating all of Wanda Group's film-related assets under one entity.[19]
Dalian Wanda developed a skyscraper in Chicago initially called Wanda Vista, designed by the Chicago-based architect Jeanne Gang, which would become the city's third-tallest building and the tallest building in the world designed by a woman, passing Chicago's Aqua Tower (also designed by Jeanne Gang).[20]
On January 11, 2016, Wanda Group acquired the American film production and mass media company Legendary Entertainment for $3.5 billion. The acquisition of Legendary made Wanda Film Holdings the highest revenue-generating film production company in the world.[21]
In May 2016, Wanda Group acquired Propaganda GEM and Hoolai Games. The entertainment marketing and product placement agency and gaming company eventually became part of Wanda Group's entertainment arm.[22]
Wanda Group also owns 20 percent of Mtime, a Chinese film website.[23]
In September 2016, Wanda announced a major partnership with Sony Pictures Entertainment, in which it would take minority investments in a number of upcoming releases. Sony stated that Wanda planned to "highlight the China element in the films in which it invests". The deal came in the wake of Wanda's failed bid to acquire a stake in Paramount Pictures.[24][25]
In November 2016, Wanda announced it would acquire the American television production company Dick Clark Productions for around $1 billion.[26] However, the deal fell through, with Bloomberg citing increasing regulation of Chinese investments both domestically and in the United States, and Deadline.com citing financial struggles in Wanda's real estate business.[27][28]
In May 2017, Wanda announced it would invest US$3.3 billion by 2024 in EuropaCity, a mega commercial real estate project near Paris's Charles de Gaulle airport that would boast of a theme park, attractions, cultural exhibitions, retail shops, outdoor sports venues and restaurants over about 200 acres. It's Wanda's biggest-ever single project in Europe. Its other offshore real estate interests include a major development on the banks of London's River Thames and plans for an industrial park in India at a US$10 billion investment.[29]
In July 2017, Wanda initiated the official opening of Danzhai Wanda Village, a tourism project valued at US$200 million aimed at alleviating the socioeconomic struggles faced by the community of Danzhai.
On July 14, 2017, it was reported that Wanda was selling a number of theme parks and hotels for US$9.3 billion to Chinese property developer Sunac.[30]
On August 5, 2017, Wanda invested US$2.14 billion in the Chinese health care industry and launched the Health Care Group in joint cooperation with the British health care services provider, International Hospital Group.[31]
On August 9, 2017, Dalian Wanda Group announced the combined acquisitions of Wanda Culture Travel Innovation Group and Wanda Hotel Management Co. respectively in a major corporate restructuring throughout the conglomerates hospitality division. In a filing posted on the Hong Kong Stock Exchange, Wanda Hotel Development said it will acquire Wanda Travel for RMB6.3 billion, paid either in cash, the issue of shares and/or convertible bonds, with share prices determined by the company's closing price on Aug. 8 at HK$1.16 per share. Wanda Hotel Development would acquire Wanda Hotel Management for a cash price of RMB750 million.[32]
In September 2017, Wanda made a foray into the Chinese high-technology industry when it launched its technology start-up business accelerator project. The final 15 high-technology business startups had been selected as the most promising for the first Wanda Accelerator project, would earn the privilege to take full advantage of Wanda's resources, including its pool of private equity and venture seed capital. Wanda's foray into the creation of imaginative and cutting-edge technological goods and services as a campaign to cultivating China's national scientific and technological innovative capacity would act as the financier to fund the country's latest and most promising high-technology startup companies of tomorrow.[33]
On September 28, 2017, S&P downgraded Dalian Wanda Commercial Properties to BB.[34]
In 2017, Wanda derived around 49 percent of its revenue from Dalian Wanda Commercial Properties Co. 28% or $10.85 billion, of total revenue was contributed by Wanda's cultural division, including cinemas, sports, and film production-related assets.[35]
On January 29, 2018, Tencent, Suning, JD.com, and Sunac signed strategic investment agreements with Wanda Commercial, with plans to invest about RMB 34 billion to acquire Wanda Commercial's 14% equity interest.[36]
On February 5, 2018, Wanda Group signed a strategic investment agreement with Alibaba Group and Cultural Investment Holdings. The 2 parties will invest 7.8 billion yuan for Wanda Film Holding's 12.77% stake. Of which, Alibaba invests 4.68 billion yuan and CIS invests 3.12 billion yuan, becoming the second and third largest shareholders after the transaction. Wanda Group remains the controlling shareholder with 48.09% of shares in Wanda Film.[37]
On April 28, 2018, the Qingdao Movie Metropolis, a nearly RMB 50 billion industrial investment project, was completed after four years and seven months of construction. The Qingdao Movie Metropolis covers a land area of 166 hectares.[38] In May 2018, Wanda, Tencent, and Gaopeng reached a mutual agreement to establish a collaborative internet technology initiative aimed at developing an innovative consumer model that seamlessly merges the realms of online and offline commerce. Among the three companies, the breakdown of the JV's shareholdings was as follows: Wanda Group's Wanda Commercial Management Group (51%), Tencent (42.48%), and Gaopeng (6.52%).[39]
