The second-largest U.S. movie theater chain has been bought by a Chinese company today in a historic takeover. AMC Entertainment Holdings was sold for $2.6 billion to Dalian Wanda Group Company in a setback to President Obama's attempts to prevent American businesses being eclipsed by their Chinese rivals.
Wanda said the deal would create the world's biggest movie theater operator and the Beijing-based company revealed it would invest an additional $500 million in AMC's development.
AMC operates 346 cinemas, mostly in the United States and Canada, and has 23 of the 50 highest-grossing U.S. outlets.
The multi-billion dollar deal undermines President Obama's promises to re- stimulate the economy at home. Following his State of the Union address in January, Obama told a manufacturing plant in Iowa: 'We need to make it easier for American businesses to do business here in America.'
In February, the President urged Congress to adopt tax proposals that reward technology companies and other businesses that create jobs in the U.S. rather than overseas.
He said: 'Companies... are realizing that even when we can’t make things cheaper than China, we can make things better. That’s how we’re going to compete globally.'
At a signing ceremony for the deal in Beijing today, Wanda chairman Wang Jianlin said: 'We support AMC becoming bigger, not only in the United States but in the global market.'
AMC's owners include Apollo Global Management, Bain Capital, the Carlyle Group, CCMP Capital Advisors and Spectrum Equity Investors. Read more: www.dailymail.co.uk/news/...147569/Movie-theater-AMC- bought-Chinese-company-Dalian-Wanda-Group-2-6bn.html#ixzz1vXyxHxp9
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Poster Comment:
Hmmmm,Bain Capital and the Carlyle Group? Somebody correct me if I am wrong,but wasn't Boy Jorge and his inner circle on the boards of both corporations at one time or another,or had close family that was/is? Not that I suspect this would have anything to do with Boy Jorge selling everything in sight to the Chinese,mind you. If I had a suspicious mind I might suspect that sort of thing,but I don't. BTW,I wonder if this means the Chinese will stop making and selling counterfeit DVD's?
