Fed to Review Hollywood Foreign Influence & Investments
The Chinese company is now in the final talk regarding on acquiring Dick Clark Productions in addition to its previous purchase of Legendary Entertainment for a reported $3.5 billion plus its majority control of AMC Entertainement.
The Government Accountability Office (GAO) had agreed to request a 16 bipartisan members of the Congress to review the Committee of Foreign Investment in the United States, which is supervised by the Treasury Department and reviews national security implication from foreign investments.
In relation to Hollywood, it specifically cited Dalian Wanda Group, which owns AMC Entertainment and Legendary Entertainment and is interested in buying additional properties.
Congress said that the request to review the CFIUS was made to determine whether authorities "have effectively kept pace with the growing scope of foreign acquisitions".
Charles Young, Managing Director of Public Affairs at the GAO confirmed that the request had been accepted and that no specific start date has been set.
Wanda is not a state-owned entity but as with most companies in China, it has a relationship with the government.
Referring to the lawmakers of who requested the CFIUS review as a "bunch of xenophobic congressmen", this person says "The Chinese maybe interested at some point to own distribution to export their movies around the world".
Wanda's chairman is due to speak in Los Angeles on October 17. The executive, who is China's richest man, is not shy about making proclamation.
For the record, congressmen in their initial letter to GAO also cited ChemChina's $43 billion acquisition of agricultural seed and chemical provider.
Finally, they added "This report will be very helpful as we continue our oversight of these issues and consider updated to CFIUS authorities to address this growing concern".
Truly, China is expanding their investments in all aspects, even on their entertainment field they are trying to grow for their lad and of course for them to improve better.