Real estate and cinema group Dalian Wanda confirmed yesterday it has acquired US-based film studio Legendary Entertainment for $3.5bn, providing exits to investors including telecommunications and internet company SoftBank.
News of the deal was originally reported by Reuters last week. Legendary has produced a string of blockbusters since it was launched in 2004, including Christopher Nolan’s Dark Knight trilogy, Man of Steel, 300, the Hangover trilogy and last year’s highest grossing film, Jurassic World.
The studio, which also runs a comic book subsidiary called Legendary Comics, previously worked in conjunction with Warner Bros before inking a similar deal with Universal in 2014.
The acquisition by China-based Wanda follows Legendary’s formation of a Chinese unit called Legendary East in 2011 in order to get around local limits on foreign-produced films in China.
The US-based studio signed a three-year co-production agreement with film distributor China Film Co in 2013, and the partnership will release a $135m fantasy action film called The Great Wall later this year, which will star Matt Damon, Andy Lau and Willem Dafoe.
SoftBank paid $250m in October 2014 for a stake in Legendary sized at between 7.5% and 10%, after venture capital firm Accel Partners invested $40m in 2012 and Waddell and Reid put up $443m for a 20% stake later the same year.
IDG Capital Partners, which acts as the Chinese corporate venturing affiliate of media and data company International Data Group, Morgan Stanley Investment Partners, Thiel Capital, Tomorrow Ventures and Breyer Capital are also past investors.
Private equity investors had supplied $500m for the company’s launch in 2004, but Legendary founder and chief executive bought them out in 2005 with help from Fidelity Investments and Fortress Investment Group. Tull will remain as CEO post-acquisition.
Tull said: “Together, Wanda and Legendary will create a completely new international entertainment company. 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.”
Wanda is the largest cinema operator in China, and purchased US-based cinema group AMC Entertainment in 2012 for $2.6bn. It is also investing heavily in online ticketing platforms, as well as other online commerce ventures.
Wang Jianlin, Wanda’s chairman, said: “The acquisition of Legendary will make Wanda Film Holdings Company the highest revenue-generating film company in the world, increasing Wanda’s presence in China and the US, the world’s two largest markets.
“Wanda’s businesses will encompass the full scope of film production, exhibition and distribution, enhancing Wanda’s core competitiveness and amplifying our voice in the global film market.”