Government-backed Chinese conglomerate Dalian Wanda Group recently publicized its vision to triple its revenue in the entertainment sector and double the ratio of overseas revenue by 2020. To support its claim, the group released its roadmap for the succeeding years.
Despite the highly motivated vision, Dalian Wanda did not explain how it plans to achieve the goals it set for itself. This led many analysts to be skeptical regarding how the group will address some of its finances.
By 2020, Dalian Wanda expects its entertainment revenue to reach 150 billion yuan or roughly $22.5 billion. In contrast, last year, the group's entertainment revenue was reported to be somewhere around 51 billion yuan. Dalian Wanda's entertainment arm operates in the film, sports, and tourism sectors. On these sectors, Dalian Wanda has been very aggressive in acquisition and merger in order to broaden its influence.
Earlier this month, Dalian Wanda announced its plans to offer $1.21 billion to Europe's largest chain of cinemas, the Odeon and UCI Cinemas Group, according to Reuters. Dalian Wanda was negotiating this deal through its major American subsidiary AMC Entertainment Holding which the company acquired in 2012 for $2.6 billion.
Many market analysts have also notice Dalian Wanda's push towards acquiring major international entertainment firms. In January, the group shelled out $3.5 billion to acquire Legendary Entertainment, a prominent production house responsible for blockbuster hits like "Inception," "Warcraft," "Pacific Rim," and "Godzilla."
In the sports business, Dalian Wanda snagged Spanish Premier Football club Atletico Madrid. The group also acquired the Swiss marketing company Infront Sports and Media, the company which holds the broadcast rights for the next two World Cup finals.
In a statement acquired by Nikkei Asian Review, Wanda chairman Wang Jianlin said, "Some people from the Chinese media have reported that Wanda knows only how to buy and buy more. I'd like to ask them: 'If I don't buy, what else would I do?'"
