After reports surfaced indicating that Chinese company Wanda Dalian’s deal to buy Dick Clark Productions (DCP) had fizzled, new information suggests that deal isn’t dead yet.
On Monday, The Wrap cited two unnamed sources who said that Wanda’s $1 billion bid for the U.S.-based production company had died. But a new report from Reuters, similarly citing unnamed sources, said that the companies still anticipate closing the deal.
Both reports indicate the deal is facing heightened scrutiny from the Chinese government and uncertainty regarding regulatory approval in China.
According to Reuters, following “severe scrutiny” from Congress regarding the transaction, Wanda may be reevaluating DCP’s value.
Wanda’s $1 billion bid for DCP was initially announced in November last year.
Owning DCP will give Wanda access to 20 high-profile TV events' rights, including the Golden Globe Awards, the American Music Awards, the Billboard Music Awards, the Academy of Country Music Awards and the New Year's countdown celebrations in New York.
“The acquisition of DCP marks Wanda’s first step into television content, occupying the highest-end global TV program resources from the start,” said the company in a statement. “Obtaining top television production rights brings about complementary and coordinated development for Wanda’s current focuses on the film, tourism, and sports industries.”
At the time the deal was announced, reports pointed out the Justice Department had been urged to look closely as Wanda’s recent deals—which include a multipicture alliance with Sony as well as multibillion-dollar purchases of Legendary Entertainment and AMC Theaters. There is fear that Wanda could be expanding its position in order to help dictate how China is portrayed in entertainment.
But Wanda has maintained that the deal is focused only business and not politics.