Why the $1 Billion Sale of Dick Clark Productions Has Been Scrapped

Mar 13, 2017  •  Post A Comment

Dick Clark Productions owner Eldridge Industries said it has terminated its agreement to sell the company to China’s Wanda Group for $1 billion, Deadline.com reports.

“Former Guggenheim Partners president Todd Boehly’s Eldridge says Wanda ‘failed to honor its contractual obligations.’ As a result, it also filed a motion in Delaware’s 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,'” Deadline reports.

“The price tag apparently began to appear to be too high as Wanda faces possible financial issues stemming in part from other big-ticket Hollywood investments, most notably, the $3.5 billion bid for Legendary Entertainment,” Deadline notes. “A deal also might have put Wanda in an uncomfortable position with Chinese officials who want to limit capital flight, as well as with U.S. lawmakers who warn that China is becoming too influential in Hollywood.”

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