- Wanda Cinema Line (002739.SZ) plans to acquire the film and game businesses under its parent company Wanda Group as Wanda is integrating its culture and entertainment assets, according to Tencent Finance.
- It is also said that Wanda Cinema Line is considering acquiring a mature and already profitable game company to increase its profile in the gaming sector.
- These acquisition plans will be finalized as soon as this year.
Why It Matters:
- Although it is growing quickly, Wanda Cinema Line’s management believes that the company is about to reach the ceiling of its cinema line business. The company has therefore adopted a strategy of diversifying its revenue and expanding in businesses other than cinema lines.
- In March, Wanda Cinema Line announced that it is planning to change its name to Wanda Film Holdings Co., Ltd. In addition, the company took over Chinese online film community Mtime for US$ 280 million. Mtime provides multiple services including online movie ticketing, movie derivative products sales, online broadcasting, and so on.
- In 2016, Wanda Group announced plan to inject its film unit, Wanda Pictures, into Wanda Cinema Line. However, the plan was halted due to policy changes and issues related to Legendary Entertainment’s earnings. Wanda says that it will restart the plan later this year.