Chinese Billionaire Wang Jianlin Makes Aggressive Moves in Hollywood
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cc Friday, September 30, 2016 latimes.com/news Chinese billionaire Wang Jianlin makes aggressive moves in Hollywood By RYAN FAUGHNDER AND DAVID PEARSON TIMES STAFF WRITER hina’s richest man, Wang C Jianlin, has been on a buying spree in Hollywood. His media conglomerate, Dalian Wanda Group, has aggressively ex- panded into the U.S. film industry. The company, which already owns the nation’s second-largest theater chain and a major U.S. film produc- er, recently signed a deal to invest in Sony Pictures movies. Now, Wanda is in talks to buy the iconic Dick Clark Productions, producer of the Golden Globe Awards, in a deal that values the company at about $1 billion. Billionaire Wang Jianlin, chairman of Dalian Wanda Group, has set his sights on Holly- And Wang, 61, may just be wood in recent years with the acquisition of several entertainment companies. (Gerry Shih / Associated Press) warming up. The brash executive has proclaimed his desire to ac- a time when China could soon needs entertainment companies like quire one of the six major Holly- eclipse America as the world’s larg- Beijing-based Wanda to suc- wood studios and vowed to “change est movie market. ceed. Making box office smashes the world where rules are set by for- “Wanda’s influence cannot yet isn’t like making cellphones and eigners.” Wanda recently was in be measured except to say that every TVs, though. Few outside of Holly- talks to buy a 49% stake in Para- possible ramification is on the ta- wood, Bollywood and South Korea mount Pictures until parent compa- ble,” said Peter Shiao, chief execu- have ever struck a winning formula. ny Viacom Inc. scuttled the sale. tive of Orb Media, a film production Wanda’s solution has been to go But not everyone is happy about and marketing company with offices on a buying binge to catch up. Wang’s ambitious plans, which in Los Angeles and Beijing. “It used “What we’ve seen with Wanda is have sparked heightened concerns to be Hollywood expanding out- they want to own studios like Leg- among some lawmakers that a com- wards, but in this case, that position endary, but they don’t want to run pany closely aligned with the Chi- is now being occupied by a Chinese them,” said Clayton Dube, director nese government could wield too company.” of the USC U.S.-China Institute. much control over the content and China’s economic miracle during “Wanda is saying, ‘We don’t know distribution of American movies. the past four decades has been de- how to make good movies yet. We If he succeeds, Wang potentially fined by its manufacturing prowess. want to learn.’ ” could tilt the balance of power in But to become a true global power But Wanda’s quest for so-called the global entertainment industry at worthy of cultural influence, it soft power is unnerving its critics in the U.S. This month, 16 U.S. con- fessor and China expert, said of friend and turned the failing devel- gressmen signed a letter to encour- Wanda’s critics. oper around. age greater scrutiny of Chinese in- Wanda Group didn’t respond He transformed it into a money- vestment in American industry, cit- to requests for comment. making enterprise in the 1990s after ing Wanda’s investments in AMC But Wang has been clear about the country legalized private real and Legendary Entertainment, his goals, once saying, “There’s estate. Wang grew his empire by which the company acquired earlier nothing wrong with being No. 1 building his signature Wanda Plazas this year for $3.5 billion, a price worldwide.” across China. The popular mixed- that some analysts said was exces- Experts note parallels to the flur- use projects often were anchored by sive. Legendary helped produce ry of Japanese investment in Holly- a movie theater — Wang’s first step such hits as “Jurassic World” and wood two decades ago. in becoming an entertainment mo- “Godzilla.” That resulted in a backlash that has gul. The lawmakers expressed con- long since fizzled. But it will be Now, Wanda wants to become cern about the potential for Chinese harder for China to eventually be China’s first dominant global brand influence to censor American mov- viewed as benignly as Japan, which — and it’s developing prime proper- ies or otherwise alter content to fur- is a close military ally of the U.S. ties in coveted locales like Beverly ther Chinese interests. and shares a democratic system with Hills and London to prove its case. Wanda is not the first Chinese Washington. The company disclosed sales of company to face scrutiny from the “The ideological consequences about $43 billion in 2015, mainly U.S. government. Chinese telecom- of these deals cannot be over- from real estate. munications hardware firm Huawei, looked,” said Wheeler Winston Dix- Wang hasn’t shied away from for example, has been blocked from on, a film professor at the Universi- fights with established rivals. He U.S expansion plans because of se- ty of Nebraska, Lincoln. “Now sparred publicly with the curity concerns. we’re selling out to this country, and Walt Disney Co. weeks before the Meanwhile, Richard Berman, a they’re not exactly our pals.” June launch of the $5.5-billion controversial media strategist and As China’s economy looks less Shanghai Disney Resort, declaring provocateur, has launched a cam- and less sta- that his theme parks would outper- paign called China Owns Us that ble, businesses seek other places to form Disney. questions whether it’s prudent to let put their cash. And the glamor- And Wang has been open about companies like Wanda buy up U.S. ous movie business has long proved his intention to show China in a pos- media companies. attractive for rich investors, includ- itive light. In announcing the recent “Chinese control of movie pro- ing Alibaba Group, Hunan TV and deal with Sony, Wanda said it would duction, radio station broadcasts, Tencent. Wanda in particular has “highlight the China element” in the and other public channels provides close ties with Beijing’s political films in which it invests, though the Chinese government with a plat- elite. Sony executives say Wanda will not form to promote its own ideological Before he became a business- have creative influence on the mov- message in the place of competing man, Wang joined the army like his ies. The deal with Sony allows Wan- ideologies — often in an unassum- father, a veteran of the Communist da to take a 10% stake in three to ing manner,” the group says in a Party’s Long March of the four upcoming movies like white paper. 1930s. Not long after leaving the “Jumanji,” giving the films access to As if to reach the heart of the military as a mid-ranking officer, the company’s massive marketing entertainment industry, the cam- Wang was appointed office director and theatrical prowess. paign paid for a billboard on the of the Xigang District Government Hollywood has been more than Sunset Strip that read: “China’s Red in the northeastern coastal city of happy to accept money from Chi- Puppet: AMC Theaters.” Dalian. He later got a job with a nese investors, with Wanda as the “They're creating a stir and struggling state-owned property biggest and most aggressive in the building a backlash,” Stanley builder in Dalian. There, he secured space. Rosen, a USC political science pro- a loan with the help of an army Hollywood is not for“ sale as a propaganda tool for foreign interests. — Lloyd Greif, Los Angeles investment banker When Wanda opened its new China using movies for propaganda eo game adaption bombed in the studio, the Qingdao Oriental Movie — especially if it gets in the way of U.S. and almost everywhere else. Metropolis in the northeastern Chi- making money. But it grossed $220 million in Chi- nese coastal city better known for “If they do that, people will stop na, partly because Wanda put it in as its beer, it drew A-list stars such as watching the movies,” said John many theaters as possible. Leonardo DiCaprio and Nicole Kid- Davis, a film and TV producer for The influence on Hollywood man. Fox and Sony. “Chinese companies movies is likely to remain relative- Locally, Harvey Weinstein, co- are all driven by the profit motive.” ly subtle for now, through self- chairman of the Weinstein Compa- Some think Wang’s public state- censorship by the studios, the in- ny, sent a letter to the Beverly Hills ments about furthering Chinese creased casting of Chinese celebri- City Council to support Wanda’s power abroad are partly just to ties and more overt product place- development of a condo and hotel maintain favor with the home coun- ment. Studio 20th Century Fox, for in the city that has been mired in a try’s government. example, brought in Chinese model dispute with the neighboring owner “Hollywood is not for sale as a and actress Angelababy for its se- of the Beverly Hilton. propaganda tool for foreign inter- quel to “Independence Day,” which Wanda’s growing clout eventu- ests, particularly to a country like also featured characters drinking a ally could give it an advantage over China that is far removed from the Chinese product called Moon Milk. the established studios. Wanda liberal politics of the entertainment Last year’s Matt Damon hit “The owns more Chinese movie theaters industry,” said Los Angeles invest- Martian” raised eyebrows with a than any other company. In 2012, it ment banker Lloyd Greif.