As a longtime fan of Legendary Entertainment and their exceptional storytelling, I can’t help but feel a sense of pride and anticipation at this latest move. The buyout of Dalian Wanda Group’s stake, a strategic decision that seems to have come at just the right moment for both parties, feels like the next step in Legendary’s incredible journey.
Legendary Entertainment is taking a significant step forward by acquiring Dalian Wanda Group’s ownership share within their company.
In an interview with The Hollywood Reporter, Legendary CEO Josh Grode described the deal as a serendipitous opportunity that came at just the right moment.
Wanda was seeking to free up funds from certain investments. Notably, our first half of the year was exceptionally successful, making us rich in unused funds. As a result, Grode mentions, ‘We have an abundance of excess liquidity on our balance sheet.’ After discussing this for approximately six months, we managed to agree on terms that seemed favorable. The deal ultimately benefits both management and Apollo, and once completed, we will own the business nearly equally.
The specific financial details of the agreement remain undisclosed, however, the company stated that they funded the acquisition using their existing cash reserves, without seeking external funding. Following the deal, the company still has a substantial amount of available funds to support ongoing operations and future growth initiatives.
In 2016, Wanda purchased Legendary for an estimated $3.5 billion. However, in 2022, Apollo bought a $760 million minority share, which included part of Wanda’s ownership stake in the company.
Aaron Sobel and Lee Solomon from Apollo, expressed their excitement about deepening their partnership with Legendary, and backing Josh and Mary [Parent], along with their exceptionally skilled team. In a statement, they emphasized that they view Legendary as an exceptional base for future development, one that is poised to flourish as the entertainment world undergoes change and transformation.
The Legendary board will be rebalanced, with an equal distribution of seats allocated to both the management team and executives from Apollo.
Grode stated that this deal greatly benefited everyone involved, and he believes we acquired it at an excellent cost,” (paraphrased)
The buyout comes amid a banner year for the company, with two of its films Dune: Part Two and Godzilla X Kong: The New Empire earning nearly $1.3 billion at the global box office. Upcoming projects include video game adaptations based on the Minecraft and Street Fighter franchises, as well as an upcoming Denis Villeneuve film and untitled Alejandro G. Iñárritu film starring Tom Cruise.
As a gamer, I’d put it like this: “Victory doesn’t stem from a single source, it’s the collective effort of everyone working together in harmony to reach a shared destination. I gotta hand it to Legendary’s creative team under Mary Parent and our collaborators at Warner Bros. This isn’t just about their work, it’s the culmination of countless hours of dedication over the years by many.
Grode emphasized that the company’s innovative spirit remains unaltered; however, acquiring Wanda offers a significant advantage: it grants Legendary greater freedom to engage in substantial merger and acquisition opportunities.
He notes that before the agreement, we had both managerial authority and creative freedom, and this remains unchanged. The only potential difference might be in discussions about major mergers and acquisitions (M&A), as we previously needed to address foreign ownership concerns, but that issue is now resolved.
Established by Thomas Tull in 2000, this renowned production company is known for collaborating with established intellectual properties and major studios. This collaboration is evident in its diverse portfolio that includes films like Godzilla, Dune, Jurassic World, and Warcraft.
Under the guidance of its management team, backed by Apollo, Legendary Entertainment plans to move forward with its film and television strategies. Additionally, they aim to explore other opportunities for expansion. It’s worth mentioning that in the previous year, Legendary secured an $800 million credit facility from JPMorgan.
Grode states that we currently hold a substantial share of the business and have excess funds available. He suggests that there’s potential to keep producing exceptional content for films and television, as well as broadening our current activities in these areas. Although we had the capability before, we can now achieve this growth organically and through mergers and acquisitions.
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2024-10-14 20:24