China firm buys US studio that made Godzilla

China’s Wanda Group on Tuesday bought US film studio Legendary Entertainment, producer of hits like Jurassic World and Godzilla, for $3.5 billion, turning its billionaire chairman Wang Jianlin into a Hollywood movie mogul. Wanda, headed by the country’s richest man Wang, is the world’s biggest movie theatre operator with a majority stake in the US chain AMC Theatres. Dalian Wanda Group’s merger with Legendary Entertainment is the biggest Chinese group with a foreign firm.

Wang has been looking to buy a Hollywood studio for several years and was reported to be in talks with DreamWorks Animation last year, but a deal was not announced. Legendary which is known for famous productions like Jurassic World, Pacific Rim, The Dark Knight, Godzilla and The Man of Steel, is the biggest cultural merger by a Chinese enterprise overseas, the state media said.

This will help China have a bigger say in the global film industry, Wang Chairman of the Wanda property and entertainment group said. “The acquisition of Legendary will make Wanda Film Holdings Company the highest revenue-generating film company in the world, increasing Wanda’s presence in China and the US, the world’s two largest markets,” Wang said. “Wanda’s businesses will encompass the full scope of film production, exhibition and distribution, enhancing Wanda’s core competitiveness and amplifying our voice in the global film market,” the tycoon said. Under the terms of the deal, Thomas Tull will remain as chairman and CEO of Legendary and will continue to be responsible for its day-to-day operations, state-run china-org.cn reported. Wanda will own over 50 per cent of Legendary which was founded by Tull 16 years ago and has since produced or co-produced many blockbusters. Tull has been trying to expand in Asia with Legendary East and signed an agreement in 2013 with China Film co.

To jointly produce Chinese-element films for wider global audiences, such as The Great Wall, which was directed by Zhang Yimou and stars Matt Damon and Andy Lau. The Great Wall, which was Tull’s idea, is now in post-production. Legendary will join Wanda’s growing global entertainment portfolio that already includes AMC Entertainment Holdings Inc., Infront Sports & Media AG, Australian cinema operator Hoyts Group and a stake in Spain’s Club Atletico de Madrid soccer team.