Congressman Seeks Review of Wanda Group's Media Deals
October 06 2016 - 9:50PM
Dow Jones News
Turning up the heat on China's recent buying spree in Hollywood,
a House subcommittee chairman has asked the Justice Department to
review entertainment industry acquisitions by Dalian Wanda Group
Co.
In a letter on Thursday, Rep. John Culberson (R-Texas) singled
out Wang Jianlin, chairman of the Chinese conglomerate, saying his
recent takeovers of U.S. entertainment companies have the potential
to encourage "foreign propaganda influence over American
media."
The letter is the latest example of growing calls for government
scrutiny of Wanda's acquisition fever, which so far has led to the
purchases of exhibitor AMC Entertainment Holdings Inc., production
company Legendary Entertainment and pending deals to buy Dick Clark
Productions and Carmike Cinemas Inc. Mr. Wang is China's richest
man, and he has made clear that he wants to eventually own one of
Hollywood's six major studios.
"Wanda has and will continue to comply with all applicable U.S.
law in connection with its media and entertainment investments in
the United States, including without limitation making the
appropriate filings with the Federal Trade Commission and the
Department of Justice," a Wanda North America spokeswoman said.
Last month, 16 members of the House of Representatives, including
Mr. Culberson, wrote a letter asking the Government Accountability
Office to review whether the scope of the Committee on Foreign
Investment in the U.S. should be expanded so it could review
Chinese acquisitions of U.S. media firms.
That kind of scrutiny is typically reserved for deals in sectors
such as aerospace that are seen as potentially affecting national
security.
The GAO this week said it would review the matter in roughly
four months.
Mr. Culberson, the chairman of the House Subcommittee on
Commerce, Justice, Science and Related Agencies—part of the
Appropriations Committee—cited Mr. Wang's close relationship with
the Chinese government and Communist Party, saying the affiliation
"has profound implications for American media."
He asked the Justice Department to consider changes to the
Foreign Agents Registration Act that would allow U.S. authorities
to monitor Wanda's acquisitions more closely.
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
October 06, 2016 21:35 ET (01:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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