Wanda/Dick Clark Nuptials Called Off
All those swirling rumors have indeed become reality, as that highly publicized $1 billion deal to sell dick clark productions (DCP) to China’s massive Dalian Wanda Group has gone kablooie — one of the biggest media deals between China and Hollywood to fall apart. As the Los Angeles Times reports, DCP owner Eldridge Industries made it official last Friday when it announced it had called off the blockbuster agreement after Wanda failed to complete the sale, which had been struggling since it was announced last November. Eldridge, the investment firm run by Todd Boehly, accused Wanda of failing “to honor its contractual obligations,” and then filed suit in Delaware Chancery Court seeking payment of its $25 million breakup fee in addition to the $25 million Wanda already paid to extend the closing date of the transaction.
The acquisition of dick clark productions, which produces The Golden Globe Awards, Academy of Country Music Awards, and Dick Clark’s New Year’s Rockin’ Eve With Ryan Seacrest, would have been Wanda’s initial foray into television, adding to its formidable arsenal of film and cinema assets, including the AMC Theatre chain and Legendary Entertainment. But Wanda, and the Chinese government, ultimately balked at the hefty purchase price promised to Dick Clark Productions, according to multiple people familiar with the matter who requested anonymity because they were not authorized to comment.
Insiders had long speculated that the dcp deal was on shaky footing. There had been growing concerns within Wanda and the Chinese government that the company would be vastly overpaying for dick clark productions. A group of investors led by Guggenheim Partners had bought it for $380 million less than five years ago. “The question on the Wanda side is, how did they let it get so far down the line before it fell apart?” said a film industry exec with ties to China who asked not to be named to protect business relationships.
