Dalian Wanda's $1 billion acquisition of Dick Clark Productions (DCP) - the first significant Chinese acquisition of a large television production company - has raised some wider questions as to trends surrounding Chinese outbound investment.
There has been a lot of activity when it comes to Chinese companies investing in the US entertainment industry. This includes direct acquisitions of movie theatres - Californian film studio Legendary Entertainment became a subsidiary of Chinese Wanda Group this year. There have also been other film-related deals like China Media Capital’s joint venture with Warner Brothers, a venture which aimed at establishing a new movie studio focused on Chinese language motion pictures.
But DCP is a special purchase: heavily focused on live events, it’s better able to withstand certain competitive pressures in the television space and doesn’t have to fear on-demand media.
In the last few years, however, concerns...