This website uses cookies to ensure you have the best experience. Learn more

Biggest Takeover In Film Industry Ever

1792 words - 8 pages

The American theatre chain gets a much needed infusion of cash, while the Chinese conglomerate gets experience in film distribution and chain management.
Dalian Wanda Group’s agreement to purchase AMC Entertainment for $2.6 billion creates the largest theater chain in the world and marks China’s biggest acquisition of a U.S. company, therefore it has some industry watchers wondering what the ramifications might be for the movie exhibition industry.

One high-ranking executive said his initial reaction to the May 21 announcement was 100 percent positive, given that AMC’s private-equity owners – Bain Capital, Apollo Global Management, the Carlyle Group and others – had allowed the theater ...view middle of the document...

The Wanda-AMC transaction is the latest involving China’s embrace of Hollywood and vice-versa. With a population of 1.3 billion, the market is enormous, but Chinese officials only allow about 34 foreign films into the country each year, which has the major film studios jockeying for favorable treatment. Disney/Marvel, for example, said Iron Man 3 will be coproduced in China with DMG Entertainment while DreamWorks Animation has formed Oriental DreamWorks with three Chinese partners and News Corp. has invested in Beijing-based Bona Film Group.

How, or if, the Wanda-AMC transaction impacts these and other initiatives remains to be seen, but Jianlin has also disclosed that Wanda applied for a license to import movies into China, which only two other entities now hold, and he told reporters that he’d like to acquire a European exhibitor next.

Some say it’s wise not to read too much into Wanda’s acquisition of AMC.  It’s simply expanding worldwide, not only in movie exhibition but in other areas, as well.

“Wanda’s parent company is – among other things – a large real estate developer, and the purchase of AMC gives them a window into the US market,” the film exhibition executive said.  “Wanda has aspirations to be the largest exhibitor in the world, and this acquisition puts them closer to realizing this goal.”

“I don’t see a lot of crossover meaning for the industry as AMC has been available to be purchased for a while and there was no bidding war,” added Steve Birenberg of Northlake Capital Management.

“Wanda probably just sees a growth opportunity in film and a good cash-on-cash investment,” said Birenberg. “Add in Wanda getting some expertise in distribution, theater construction and theater management for a big opportunity to expand Chinese theaters and screens, and I think Wanda probably just sees it as a decent investment with a Chinese-growth kicker.”

China Buys Hollywood Influence with Takeover of Top U.S. Cinema Chain

A massive China-based conglomerate headed by a member of the nation’s ruling Communist Party announced last week the largest ever corporate takeover of an American firm by a Chinese company, sparking concerns among analysts about the tyrannical regime’s projection of “soft power.” For more than $2.5 billion, the Dalian Wanda Group agreed to purchase U.S.-based AMC Entertainment Holdings — one of the world’s top movie-theater chains — to create what will become the biggest cinema operator on earth after the merger. 

Critics of the deal expressed alarm over the influence the deal is expected to give China’s totalitarian rulers within the U.S. and international film industry. As the second-largest movie-theater chain in America, Kansas City-based AMC owns or operates hundreds of cinemas in more than 30 U.S. states and at least five other nations. It is also the world’s largest operator of I-MAX and 3D screens. 

As such, the firm wields a great deal of sway when it comes to what movies...

Other Papers Like Biggest Takeover in Film Industry Ever

Global and Chinese Transparent Conductive Transfer Film Industry, 2009-2019 Market Research Report

662 words - 3 pages Market Research Report on Global and Chinese Transparent Conductive Transfer Film Industry, 2009-2019 is a professional and in-depth market survey on Global and Chinese Transparent Conductive Transfer Film industry. The report firstly reviews the basic information of Transparent Conductive Transfer Film including its classification, application and manufacturing technology; The report then explores global and Chinas top manufacturers of

The Evolution of Sound in Films

1609 words - 7 pages partly because of new and upcoming stars who started dominating the talking film industry. An example is Clark Gable. During the silent film era, Gable was a fairly unknown film star who was mainly cast as an extra. It was only after the development of the talking film industry that Gable started being cast in lead roles. He would later go on to become of the biggest stars of the talking film era. The development of sound on film technique was

Global Heat resistant Release Film Industry 2015 Market Research Report

1879 words - 8 pages Global Heat resistant Release Film Industry 2015 Market Research Report “2015 Global Heat resistant Release Film Industry Report is a professional and in-depth research report on the world’s major regional market conditions of the Heat resistant Release Film industry, focusing on the main regions (North America, Europe and Asia) and the main countries (United States, Germany, Japan and China). The report firstly introduced the Heat

Ailing Music Industry

843 words - 4 pages The takeover of Warners Music Group (WMG) in July 2011 for $1.3b by Access Industries heralds in a new era for the company in an ever-changing music industry. The purchase affords exciting opportunity as well as possible threats in the near future. The music industry on the past few years has undergone huge overhauls and revamps. With the advancement of technology, companies are constantly seeking new ways to increase profits and further

Mannesmann Vodaphone

1059 words - 5 pages ? Vodafone will face significant hurdles in their bid for Mannesmann. First, it would be the largest hostile takeover ever and the first foreign-led takeover in Germany. They would likely have pushback, and lengthy approval from UK anti-trust regulators. Additionally, German law did not favor hostile takeovers. The supervisory board was made-up of 20 representatives representing shareholders, workers, and trade unions. These representatives

The Magnificent Ambersons

2439 words - 10 pages “The biggest mistake we have made is to consider that films are primarily a form of entertainment. The film is the greatest medium since the invention of movable type for exchanging ideas and information, and it is no more at its best in light entertainment than literature is at its best in the light novel.” -Orson Welles Orson Welles was passionate about film. By the young age of 25, he had directed, produced, and starred

Legalize It

1686 words - 7 pages for producing wood pulp based paper. With the boom of the hemp industry this invention would have been useless. DuPont was also in the railroad car industry. According to their own records wood pulp products accounted for 80% of all DuPont’s railroad car loadings for the 50 years prior to 1937. 80% of all their profits would have been lost with a hemp takeover. Two years earlier, in 1935, DuPont developed nylon, a substitute for hemp rope. Nylon

Reel Women

1737 words - 7 pages for women to succeed in. Both Shulman and Bigelow will focus on the aim of elevating women through education, outreach and professional development in the industry as they know it first-hand. Figures seen by the Guardian have revealed that gender disparity is entrenched in the film industry, where more than three-quarters of the crew involved in making 2,000 of the biggest grossing films over the past 20 years have been men, while only 22% were

Bhel Takes over Bhpv

672 words - 3 pages Heavy Industry, in Visakhapatnam on Saturday. Our Bureau |Advertisement | |[pic][pic][pic] | Visakhapatnam, May 10 Bharat Heavy Electricals Ltd (BHEL) took over Bharat Heavy Plate and Vessels Ltd (BHPV) on Saturday; it also signed a memorandum of understanding with AP Generation Corporation for setting up a 125-MW integrated coal

Big Pharma: Suppression of a Cure for Caner

1418 words - 6 pages ). G. Edward Griffin, author of A World Without Cancer teaches that “The takeover of the medical industry was accomplished by the takeover of the medical school.” The fortunes of Carnegie, Morgan and Rockefeller gave massive grants of money to medical universities, and then in turn proposed that the schools allow representatives of the donor to sit on the schools board of directors (Griffin). These three billionaires where large supporters of the

Environmental Scan

1249 words - 5 pages product delivery. Target has also chosen to focus on the environment and also do not sell tobacco or firearms. Marketing is on of Targets biggest strengths, which show in the sale of their gift cards. Target has taking the approach of the good guy in the big box retail industry. They identify with the younger generation and that is obvious when you see their marketing strategies. Some of Target’s weaknesses are to the point causing

Related Essays

Film Industry In Viet Nam Essay

644 words - 3 pages Entertainment industry is very concerned to develop in many countries. Because it can bring superprofit to the government and contribute to introduce to the tourists about their history and culture .Today, while film industry of many countries in the world are more and more developing, Viet Nam is still backward. Compared with other ASIAN countries such as Thailand, Singapore, Philippines…,the investment of Viet Nam in film industry is very

The Role Of Computer Generated Imagery In The Movie (Film) Industry

895 words - 4 pages The Role of Computer Generated Imagery in the Film Industry Computer Generated Imagery is the special effects used in motion pictures to create a visual depiction of an illusion that can not be easily created in real life. Directors of major motion pictures have been using these technologies since the early days of the personal computer. Early on, when and special effects were in their beginning stages, it was difficult to make efficient and

Market Study: Global And Chinese Bopet Film Industry, Size, Share, Growth, Development, Trends And Forecast Report 2009 2019

668 words - 3 pages and in-depth market survey on Global and Chinese BOPET Film industry. The report firstly reviews the basic information of BOPET Film including its classification, application and manufacturing technology; The report then explores global and China’s top manufacturers of BOPET Film listing their product specification, capacity, Production value, and market share etc. The report further analyzes quantitatively 2009-2014 global and China’s

Disney Finance Case Essay

994 words - 4 pages Executive Summary Walt Disney Productions Inc. (Disney) is the target of a takeover attempt by Saul Steinberg. Over the course of several months, Disney management has resisted the takeover in several ways including the acquisition of Arvida Corporation in a "for stock" deal and the pending acquisition of Gibson Greeting Inc. (Gibson). Steinberg has countered these moves with a public tender offer of $67.50 per share if Disney acquires Gibson