Wanda's plan to acquire Paramount aborts: they won't sell it anymore!

In July this year, foreign media revealed that Wanda Group intends to become a potential buyer of Paramount and acquire 49% of its shares. Recently, foreign media once again revealed that the deal could not be done because Paramount's parent company Viacom decided not to sell.

According to Bloomberg, several people familiar with the matter said that Paramount's parent company Viacom has made a decision that Paramount Pictures is one of the company's core assets and will no longer consider selling its shares.

Viacom said in February that it hired investment bank PJT Partners to evaluate possible share deals after investors approached the company about buying a stake in Paramount. People familiar with the matter said that PJT is no longer doing this work. However, they also said that Viacom may restart the deal in the future.

Viacom representatives declined to comment on the matter.

Wang Jianlin, chairman of Wanda Group, said in an interview with Reuters on August 23,"My goal is to acquire Hollywood companies and bring their technology and film production capabilities to China." Wang Jianlin believes that Wanda may acquire any of the six major Hollywood production companies. In addition to Paramount, the "Hollywood Big Six" also include 20th Century Fox, Warner Bros., Disney, Universal and Sony.

"We are interested in not just Paramount, but all of the Hollywood Big Six. If any of the Hollywood Big Six is willing to sell to us, we will be very interested." Wang Jianlin also said: "Only the six major Hollywood studios are truly global film companies, and none of the others are. This is a necessary step if we want to build a true movie empire."

In January this year, Wanda Group announced the acquisition of Legendary Pictures in the United States. Wanda's American theater line AMC reached an agreement to acquire American theater line Carmike Cinemas and European theater line Odeon &UCI. In July, AMC announced the acquisition of Odeon &UCI for £ 921 million, thus completing the global layout of theater acquisitions in the United States and Europe. After the merger is completed, Wanda will control 15% of global box office revenue. Wanda's goal is to control 20% of global box office revenue in 2020.

Although selling a stake in Paramount would allow Viacom to repay part of its $12 billion debt, it was opposed by Viacom's controlling shareholder National Amusements Inc, saying the deal would harm shareholders.

Since Sumner Redstone, who runs All-America Entertainment, ousted former Viacom chairman and CEO Philippe Dauman from the board, his daughter Shari Redstone has held important positions on Viacom's board. In addition, five new members have been placed on the board.

In July this year, the Wall Street Journal reported that Wanda was interested in becoming a potential buyer of Paramount and acquiring a 49% stake in it. But the Lei Shidong family later reiterated its opposition. After foreign media leaked the news that Wanda was bidding for Paramount, Paramount Pictures 'valuation rose from US$8 billion to US$10 billion due to Wanda's bid. Now that the Lei Shidong family has firmly controlled Viacom, it is even more impossible for Wanda to acquire Paramount. At the same time, Paramount Pictures 'share price is expected to undergo new changes.

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Editor: vian