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Pros and cons of Wanda-AMC deal

Updated: 2012-09-10 13:37
( China Daily)

Pros and cons of Wanda-AMC deal

Dalian Wanda Group Co, one of China's leading property developers and the owner of China's largest movie theater chain by box office revenue, announced on Sept 4 that it had successfully completed the acquisition of the US' second-largest cinema chain - AMC Entertainment Holdings Inc. The deal is valued at $2.6 billion. Wanda also promised to give $500 million to AMC to fund its strategic and operating initiatives in the future. After the deal, Wanda will operate AMC as its wholly owned subsidiary under its existing brand. The transaction has turned Wanda into the largest movie theater chain operator globally.

WANGXIONGGANG: Why can't tickets for Wanda cinemas be any cheaper now that its the world's largest movie theater chain operator?

YANGCHENWEI: Another Chinese enterprise that has expanded overseas. I'd like to see its performance in two years.

NONGWACHENGYU: I wonder whether Wanda will make money from the acquisition or not? Don't just capitalize a company which is in difficulty and help it out of a dilemma without bringing any benefit to yourself. Japanese enterprises used to acquire many companies around the world but what did they get in the end?

LASHOUJUNZI: I think the improvement in quality is a lot more important than the growth of scale.

8LIAO8LIAO8: Wanda has already made enough preparations for an initial public offering of its movie theater chain subsidiary, Wanda Cinema Line. The time for turning the effort into cash will soon come.

DUJIANGUODEWEIBO: It is the beginning of Wanda's transformation.