Skip to main content

China firm buys AMC to form world's largest cinema chain

By Kevin Voigt, CNN
updated 12:25 AM EDT, Mon May 21, 2012
Under the new U.S.-China deal, more IMAX or 3D films are being allowed into China.
Under the new U.S.-China deal, more IMAX or 3D films are being allowed into China.
STORY HIGHLIGHTS
  • Dalian Wanda Group buys AMC in a $2.6 billion deal for the U.S. theater group
  • Creates the world's largest theater chain, according to the companies
  • Comes after a raft of cross-Pacific deals between Hollywood and Chinese firms

(CNN) -- China's Dalian Wanda Group and AMC Entertainment announced Monday a $2.6 billion deal to take over the U.S. theater group, forming the world's largest cinema chain, according to a new release on the deal.

The move is the latest in a raft of deals between U.S. entertainment companies and Chinese firms, linking the world's largest theater market with the world's fastest growing.

"This acquisition will help make Wanda a truly global cinema owner, with theatres and technology that enhance the movie-going experience for audiences in the world's two largest movie markets," said Wang Jianlin, chairman and president of Wanda.

Wanda, a private company that previously operated solely in China, generates $16.7 billion in annual revenue from its commercial development and entertainment businesses, the company said. The group owns 86 theaters with 730 screens in China.

"As the film and exhibition business continues its global expansion, the time has never been more opportune to welcome the enthusiastic support of our new owners," said Gerry Lopez, chief executive officer and president of AMC.

AMC operates 346 multiplex theaters, largely in North America, with a total of 5,034 screens. Headquarters of AMC, a privately held company, will remain in the Kansas City area and day-to-day operations, including the process for film programming, will remain unchanged, the release said.

In a deal last February, China agreed to increase the quota of 20 foreign films per year -- most of them from the U.S. -- to add an additional 14 IMAX or 3D films each year, and nearly doubled the cut foreign film companies can take from Chinese box office to 25%.

In April, The Walt Disney Company China, Marvel Studios and DMG Entertainment of Beijing announced a production deal in which "Iron Man 3" will be co-produced in China. That follows the February announced that a $330 million joint venture between DreamWorks Animation, China Media Capital (CMC) and two other Chinese companies to establish a China-focused family entertainment company, Oriental DreamWorks.

Last month came revelations, first reported by Reuters, that the Securities and Exchange Commission sent inquiries to 20th Century Fox, Disney and DreamWorks about whether Hollywood studios were paying bribes to get a foothold in the China theater market.

ADVERTISEMENT
Part of complete coverage on
updated 8:37 AM EDT, Wed April 16, 2014
Mentions of the 1989 Tiananmen Square student protests or political reform are still censored in China.
updated 2:01 PM EDT, Sun April 13, 2014
CNN's Brian Stelter talks with CCTV correspondent Jim Spellman on how the Chinese media has covered MH370's mystery.
China's economy has bested many others in just the past 10 years.
updated 2:02 AM EDT, Fri April 11, 2014
In China, users of the "Life Black Box" website can set up final farewells to their friends in case they suddenly die.
updated 1:32 AM EDT, Fri April 11, 2014
A recent university study claims Chinese micro-blogging activity might not be as vibrant as expected.
updated 6:14 AM EDT, Thu April 10, 2014
Chinese art has been fetching some serious cash -- here's how we can elbow into the market
updated 10:51 PM EDT, Wed April 9, 2014
A Shanghainese collector paid $36 million for this tiny cup decorated with chickens.
updated 2:57 AM EDT, Tue April 8, 2014
Ben Richardson on corruption in China: a veil of secrecy shrouds the links between power and wealth.
China's economy is slowing and growth in 2014 could fall short of the government's official target, according to a CNNMoney survey of economists.
updated 8:38 AM EDT, Tue April 8, 2014
U.S. Defense Secretary Chuck Hagel is the first foreigner to visit the Chinese aircraft carrier Liaoning.
updated 9:26 PM EDT, Sun April 6, 2014
If the disappearance of Malaysia Airlines Flight MH370 caused a rift in China-Malaysia relations, the two countries appear to have put it behind them.
updated 1:17 AM EDT, Fri April 4, 2014
Martin Jacques argues that in the twenty-first century, China will challenge our perception of what it is to be modern.
A new survey of university students in China shows where they most want to work. What are the dream employers for Chinese students?
updated 9:24 AM EDT, Wed April 2, 2014
What are President Xi Jinping's greatest goals as he visits the EU headquarters in Brussels?
Last year, thousands of Chinese tourists flocked to Yellowstone National Park to view the mountains, the buffalo and Old Faithful.
updated 8:38 AM EDT, Mon March 31, 2014
A senior Bloomberg News journalist quit his role earlier this month, saying the "mishandling" by his bosses of a story critical of China was behind his departure.
updated 7:55 AM EDT, Thu March 27, 2014
"The aim is to let [families of MH370 passengers] express anger while keeping them restrained," says a Chinese official.
updated 9:58 AM EDT, Thu March 27, 2014
U.S. President Barack Obama's secret weapon in China? Michelle.
updated 10:53 PM EDT, Wed March 26, 2014
Private schools that employ humanistic pedagogy for young children are becoming popular in China. A look at the factors behind the boom and potential pitfalls.
ADVERTISEMENT