LOS ANGELES (CelebrityAccess) — A $1 billion dollar deal between Eldridge Industries and Chinese conglomerate Dalian Wanda Group to acquire U.S. events and awards show producer Dick Clark Productions has collapsed amid growing political and economic tensions.
According to the Los Angeles Times Dick Clark Productions owner Eldridge Industries, a holding company representing Guggenheim Partners, said Friday that they called off the agreement after Dalian Wanda Group failed to complete its purchase of DCP. Wanda initially announced their plans to purchase DCP in November in a deal worth an estimated $1-billion
“Eldridge’s affiliate terminated the agreement this week after Wanda failed to honor its contractual obligations,” Eldridge said in a statement. “Eldridge’s affiliate also has filed with the Delaware Chancery Court to compel release of the balance of escrowed funds to which it is contractually entitled given Wanda’s failure to consummate the sale.”
Wanda faced increasing regulatory headwinds in the deal as China has increasingly sought to limit capital outflows from the country. As well, some analysts viewed Wanda's purchase price for DCP as overstated.
Wanda, which focuses on real estate, has made several previous investments in U.S. entertainment companies including the AMC Theatre chain and their purchase last year of Legendary Entertainment, the production company behind films such as "The Dark Knight" and the "Hangover" comedy series. – Staff Writers
