201may 12, Dalian Wanda acquired AMC cinema, the second largest cinema group in the world, for 3 10 billion dollars. Wanda Group will acquire 0/00% equity of AMC/KLOC, and assume relevant debts of AMC. This $36,543.8 billion includes $2.6 billion in total transactions and no more than $500 million in working capital invested in AMC after the merger. On September 4th, 20 12, Wanda Group officially announced the completion of the merger and acquisition of American AMC in Los Angeles, so that Wanda Group will become the largest cinema operator in the world. Wanda Group's cross-border mergers and acquisitions can be described as shocking the world. This is not only the largest M&A for private enterprises in China to invest in the United States, but also the largest overseas M&A event for China's cultural industry.
Second, Wanda Group's market analysis after cross-border merger and acquisition of AMC
1, expansion of market scale
Established in 2005, wanda cinema line, a subsidiary of Wanda Group, is the first cinema line in Asia, with 86 five-star studios and 730 screens, including 47 IMAX screens, accounting for 15% of the national box office share. 20 1 1 the annual box office revenue exceeded 178 billion yuan, ranking first in China market share.
AMC is the second largest cinema in North America, with cinemas in the United States, Canada, Britain, France and China. AMC opened its first cinema in the United States on 1920. It has a history of 92 years and is a household name in the United States. The company has 347 cinemas and 5,048 screens, and is also the largest IMAX and 3D screen operation company in the world. The cinemas owned by AMC are concentrated in the centers of big cities in North America, with 23 of the top 50 cinemas in North America.
After the acquisition of AMC, Wanda went overseas from China, rapidly expanded its market territory and became the world's largest cinema operator, with a global box office market share of about 10%, and its enterprise scale and market influence will be greatly enhanced. In particular, it has advantages in the number of IMAX and 3D screens, which is conducive to taking the lead in the market. This move has laid a solid foundation for Wanda to occupy about 20% of the world box office market in 2020.
2, the improvement of market awareness
(1) With the acquisition of AMC, Wanda started a substantial step in its internationalization strategy and became a transnational acquisition that shocked the world, which was equivalent to investing a huge international advertisement in the world and greatly enhancing the international popularity of Wanda brand. In the eyes of Americans, Wanda's acquisition of AMC is just like Japan's acquisition of Universal Pictures in Colombia in the 1980s, in order to increase the brand's popularity and influence. Indeed, brand image and public awareness are very important for an enterprise. Enterprises in China need brands, and AMC is a good brand. Done, Wanda's own price has doubled. Wanda's acquisition of AMC has opened a window to the world for its other businesses.
(2) Wanda will become the cinema enterprise with the largest number of screens in the world and dominate the two major power markets in the world. In the future, when negotiating with Hollywood film companies, its voice will be greatly increased. The New York Times commented after the merger that the merger represented a significant increase in China's influence in the American film industry. This influence is directly reflected in the fact that in the near future, Chinese-made films will be released simultaneously in the first-line cinemas in the United States. The Los Angeles Times believes that China movies are not popular with American audiences at present, and one of the important reasons is poor distribution and insufficient screening time, which will be improved after Wanda acquires AMC. The merger of AMC makes China occupy a more favorable position in film introduction. Through this acquisition, Wanda can also gain first-hand experience in film distribution, cinema construction and management, so as to expand its business in China.
(3) Domestically, Wanda has achieved 20 1 1 the first achievement in the whole industry, and the merger and acquisition of AMC has the icing on the cake. The introduction of advanced management, technology and innovative ideas owned by AMC paves the way for Wanda to occupy a leading position in the domestic market, so that it can be recognized and affirmed by more market consumers with more advanced technology, better service and more distinctive design.
3, the enhancement of market competitiveness
The market competitiveness of cultural industry refers to the ability of producers and operators of cultural products to control cultural resources, develop cultural products and services, open up domestic and foreign cultural markets and make profits under the commercial environment created by the government.
(1) By opening up new markets, opening up new cultural consumption space and introducing new business models, Wanda's market expansion ability in the whole cultural industry has been enhanced. Such a large-scale transnational acquisition has accelerated the pace of promoting the collectivization and large-scale operation of the cultural industry. AMC is a large-scale cultural group with prominent main business, well-known brand and strong comprehensive ability. After Wanda acquired AMC, it implemented multimedia concurrent operation and cross-regional operation as a breakthrough to strengthen market integration, adjust industrial structure and improve the competitiveness of cultural enterprises and institutions.
(2)AMC is an enterprise that pays attention to innovative ideas, and its merger and acquisition has greatly enhanced Wanda's overall innovative ability. At present, the competition in the cinema line industry is fierce. If you want to stay out of the fierce competition, you must make a breakthrough in innovation. Because the innovation ability of cultural industry has been regarded as the most dynamic and dynamic factor, it has become the core development power of cultural industry.
(3) After the merger, Wanda has greatly increased the number of cinemas, IMAX and 3D screens, and the audience of the whole market has also greatly increased. After the merger, Wanda will have AMC cinema line ranked second in the world and wanda cinema line ranked first in Asia, thus becoming the largest cinema line operator in the world, and its market competitiveness will undoubtedly be improved.
4. The existence of market risks
According to public reports, the North American market where American AMC cinemas are located is not optimistic. 20 1 1, North American cinemas 1.28 billion people went to the cinema, which was 4% lower than that in 20 10, and was the lowest data for North American cinemas in 16. 20 1 1 annual American box office revenue 102 billion US dollars, down 3% from 20 10. Due to the sluggish market, AMC has been heavily in debt for a long time. 20 1 1 year, its net loss reached $654.38+23 million. In the past four years, AMC has tried IPO twice, but failed to do so.
In addition, as a cross-border M&A case, Wanda has to face a series of risk factors such as integration risk, legal risk and financial risk, so many people were not optimistic about this M&A at that time. ..
Third, enlightenment.
By the end of 20 12, the revenue of AMC20 12 was $2.7 billion, and the net profit was 5 1.5 million. In the fiscal year ending June 30th, 20 13, AMC's revenue was $2.7 billion and its net profit was $82.8 million. Finally, AMC was officially listed on the New York Stock Exchange in June+February, 5438, and made an initial public offering of 18,4210,053 Class A common shares at the price of18. If over-allotment was added, it raised nearly $400 million. After listing, the total market value of AMC shares reached $65.438+86.8 million, of which the market value of Wanda Group shares was about $65.438+46.0 million.
The case of Wanda Group's cross-border acquisition gives us a lot of room for thinking. At that time, there were many affirmations and doubts, but AMC finally made Wanda a big winner.
Wanda, with great foresight and ambition, has taken a big step in the development of overseas markets. Wanda's acquisition of AMC is different from Geely's acquisition of Volvo and Lenovo's acquisition of IBM's PC business. It has neither brought core technology nor a market with huge growth potential. However, Wanda still opened the door to its overseas market with the eyes of explorers, and finally confirmed the value of this acquisition. Today, Wanda Group has owned AMC, which ranks second in the world, and wanda cinema line, which ranks first in Asia, and has become the largest cinema operator in the world. It can be predicted that with Wanda going global, China's film industry will have a broader sky.