(Bloomberg) -- Legendary Entertainment LLC, the studio behind movies such as Dune and Godzilla vs. Kong, has reached an agreement to purchase Dalian Wanda Group Co.’s stake in the company, confirming an earlier Bloomberg report.
Legendary is funding the transaction with its own cash, according to a statement Monday from the Burbank, California-based company. The business will now be solely owned by management and Apollo Global Management Inc. The board will be evenly split between Legendary and Apollo representatives, Chief Executive Officer Josh Grode said in an interview.
The deal unwinds one of Wanda’s most high-profile overseas acquisitions as the Chinese conglomerate accelerates sales of non-core assets amid a slowdown in China’s property sector and higher interest rates.
Founded by financier Thomas Tull in 2000, Legendary has generated more than $20 billion at the global box office. Wanda founder Wang Jianlin, once one of Asia’s richest people, purchased the company in 2016 amid a binge of acquisitions. Wanda, which also owned movie theaters, aspired to compete with Walt Disney Co. in films and theme parks.
As Wanda’s troubles later mounted, Apollo bought a $760 million equity stake in Legendary in 2022. The private equity firm isn’t investing more money as part of the latest buyout. Legendary secured a five-year, $800 million facility led by JPMorgan Chase & Co. last year.
Grode has said he’s looking to acquire US and European entertainment businesses focused on film, TV, video gaming and artificial intelligence.
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