‘Dune’ Producer Legendary Entertainment Buys Out Dalian Wanda’s Stake

As a cinephile with decades of experience under my belt, witnessing the dynamic shifts within the entertainment industry has always been a thrilling ride. The latest move by Legendary Entertainment to buy out Dalian Wanda Group’s stake is yet another testament to the ever-evolving landscape we find ourselves in.


In a recent deal, the production company behind the “Dune” series, Legendary Entertainment, has acquired Dalian Wanda Group’s share in the business. This leaves Legendary Entertainment and Apollo Global Management as the primary decision-makers. The specific details of the sale, which Legendary financed independently using funds from its own financial resources, have not been publicly revealed. Legendary stated that they did not require any external financing for this transaction.

In 2016, a Chinese conglomerate known as Dalian Wanda Group made a purchase worth $3.5 billion of an entertainment company. Later on, in the year 2022, Apollo acquired a portion of the company Legendary for approximately $760 million.

Approximately half a year ago, negotiations for purchasing Wanda commenced. In an interview, Josh Grode, CEO of Legendary Entertainment, mentioned he couldn’t recall whether the talks began with Legendary or Wanda, but stated that this acquisition would aid the company in potential future growth.

He stated that we currently possess more funds than necessary, providing us an opportunity to make a profitable move by purchasing a shareholder at a reasonable cost, which would also benefit our company.

Grode mentioned that if Legendary chooses to combine with another business or buy one out, it could simplify the process of obtaining regulatory approval due to no longer being controlled predominantly by a Chinese company. In his words, “there won’t be any international complications hindering any future growth.

Aaron Sobel and Lee Solomon, partners at Apollo, expressed their excitement about deepening their alliance with Legendary and backing Josh, Mary, and their exceptionally gifted team. They believe Legendary remains a remarkable foundation for future expansion that is poised to prosper as the entertainment industry undergoes change and transformation.

Even though Legendary used its own funds for purchasing Wanda, they still have plenty of spare cash left over from the deal to support their existing operations and future growth plans. In 2023, it was revealed that Legendary had obtained a $800 million credit line, spanning five years, with J.P. Morgan serving as the main lender.

Instead of maintaining assets, Wanda has been actively getting rid of them due to a financial crisis involving cash shortage and high levels of debt. In 2024, they sold part of their mall operations and transferred Sunseeker International, a yacht manufacturer, to Lionheart Capital. Grode stated that Wanda was initially hesitant when the idea of selling off assets was first proposed.

Wanda needed persuading, he pointed out. They mentioned they wanted cash from certain investments, but they weren’t in a hurry to sell.

Mary Parent, the chairperson of global production at Legendary Entertainment, will carry on supervising the creative aspects of the film. Given Legendary’s successful track record, this decision is logical. This year alone, Legendary has produced blockbusters like “Dune: Part Two,” a critically acclaimed sci-fi movie that amassed approximately $715 million worldwide. In November, they are set to debut the spinoff series, “Dune: Prophecy.” Besides the “Dune” franchise, Legendary has expanded a universe of monster movies, with the latest addition, “Godzilla x Kong: The New Empire,” premiering last spring and earning over $570 million at international box offices.

In their lineup of future releases, you’ll find movies based on video games such as “A Minecraft Movie” with Jason Momoa and Jack Black, and “Street Fighter.” Additionally, they are supporting Alejandro G. Iñárritu’s next production, featuring Tom Cruise in the lead role.

Notable Releases from Legendary also feature “The Hangover,” “The Dark Knight,” and “Enola Holmes.” In the realm of television, Legendary has brought us “Monarch: Monsters’ Lineage” on Apple TV+ and “Tomb Raider: Lara Croft’s Legend” on Netflix, along with other series.

In this deal, O’Melveny & Myers stood for the legendary entity, while Morgan Lewis Bockius took on the role of representing its management. On the other hand, Freshfields Bruckhaus Deringer was the representative for Wanda, and Apollo Funds were represented by Wachtell, Lipton, Rosen & Katz.

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2024-10-14 20:17