Wanda Group’s Dick Clark Productions deal nixed

Los Angeles /
Mar.March 10, 2017 12:00 PM

The owners of Dick Clark Productions have scrapped a $1 billion deal to sell the the company to China’s Wanda Group after a month in escrow, the Los Angeles Times reported.

Eldridge Industries, the company that controls Dick Clark, announced Friday that it called off the agreement because Wanda “failed to honor its contractual obligations.”

A number of factors may have contributed to the failure of the deal, including the Chinese government’s crackdown on the outward flow of Chinese capital as well as Wanda’s internal concern that the $1 billion price tag was too high.

Guggenheim Partners, in a group with other investors, bought the production company for $380 million four years ago.

President Donald Trump’s protectionist rhetoric hasn’t helped either, since it’s put Chinese dealmaking in the U.S. under the microscope, the Times reported.

Beijing-based Wanda, which owns AMC Theatres, gained City Council approval late November for its $1.2 billion One Beverly Hills condo and hotel project. [LAT]Cathaleen Chen


Related Articles

arrow_forward_ios
(iStock)
LA County sued over commercial eviction moratorium
LA County sued over commercial eviction moratorium
The future of San Francisco’s Oceanwide Center is up in the air again (Getty, Foster and Partners)
Contractors pull out as Oceanwide Center sale falls through again
Contractors pull out as Oceanwide Center sale falls through again
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari
Industrious partners with landlords to offer tenants satellite workplaces
Industrious partners with landlords to offer tenants satellite workplaces
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske
Northwestern Mutual picks up Santa Monica office campus for $166M
Northwestern Mutual picks up Santa Monica office campus for $166M
Prop 15 property tax measure draws millions (Credit: iStock)
Prop 15 property tax measure draws millions of dollars from for and against campaigns
Prop 15 property tax measure draws millions of dollars from for and against campaigns
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)
California allows barbershops to reopen, but LA holds back
California allows barbershops to reopen, but LA holds back
LA County assessor Jeffrey Prang
LA County properties valued at nearly $2 trillion…before pandemic
LA County properties valued at nearly $2 trillion…before pandemic
First District Supervisor Hilda Solis (Credit: Rebecca Sapp/Getty Images)
LA County select reopening target date for restaurants and retailers
LA County select reopening target date for restaurants and retailers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...