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Case Code: BSTR514
Case Length: 10 Pages 
Period: 2011 - 2016   
Pub Date: 2017
Teaching Note: Available
Organization :Dalian Wanda 
Industry :Real Estate, Movie show business and movie production business 
Countries : China, U.S.A  
Themes: -  
Case Studies  
Business Strategy
Human Resource Management
IT and Systems
Leadership & Entrepreneurship

Wanda: Flexing China's Soft Muscle

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Soon after the quota was relaxed, in May 2012, the Wanda Group announced that it would take over American Multi-Cinema (AMC), North America’s second largest screen operator. At that time, AMC owned 346 multiplex theaters with more than 5,000 screens, mostly in the US and Canada. The talks between Wanda and AMC had begun in 2010 but the deal was stalled owing to disagreements on valuations. When it was finalized in 2012, the agreement made AMC a wholly-owned subsidiary of Wanda. The $2.6 billion deal made Wanda the largest cinema operator in the world by revenue. Wanda also planned to invest an additional $ 500 million in AMC. Wang said, “The acquisition would make Wanda a “global cinema owner” with a strong presence in the world’s two largest movie markets.” The move would retire AMC’s debt and fund its strategic initiatives. ...

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In 2015, there was no stopping Wanda. The company announced its acquisition of the Hoyts Group of Australia. Hoyts operated 48 cinemas with 402 screens and 75,000 seats in Australia and New Zealand. Though at $365 million, the deal was a fraction of the AMC acquisition, it gave a clear indication of the global ambition of the Wanda Group. "This deal will help realize the company's strategy to go global and will help boost our scale and international presence," said Wang . ..


In 2013, at $31 billion, the US film industry had posted only a modest increase in revenues. The domestic box office revenues had experienced slow growth owing to slow increases in the price of tickets. But the industry enjoyed a trade surplus of $14.3 billion in 2011 and offered attractive possibilities for foreign investors with production tax incentives. Over the years, the US movie industry had truly shown formidable strength in releasing blockbusters across the world. But the domestic industry had slowed down. Regal Cinema, the largest movie chain in the US, had witnessed a plunge in revenue and profits. Analysts opined that people weren’t seeing as many movies as they used to. As US cinema attendance flagged, AMC too witnessed losses to the tune of $73 million in the last quarter of 2011...


Exhibit I: Richest People in China – Forbes - 2016.
Exhibit II: Wanda’s Businesses.
Exhibit III: Biggest Acquisitions of Wanda Group till date
Exhibit IV: Top Grossing Movies in China till date.