Dalian Wanda Group, the property-to-entertainment conglomerate headed by Asia’s richest man, is planning five "substantial" acquisitions this year as the company "braces for a drop in sales," according to Jill Mao of BLOOMBERG. Wanda’s pursuit of targets "will focus on companies in the entertainment and sports industries," Chair Wang Jianlin said at a briefing in Hong Kong on Tuesday, "without naming any companies." Wang is "increasingly looking toward entertainment to spur growth as China’s slowing economy undermines his main property business." Last week, Wanda announced it will buy Legendary Entertainment, the U.S.-based producer of "Godzilla," for $3.5B in cash. Wanda forecast that sales will fall 12% in '16 as "slumping revenue from its main real estate business overshadows gains from the burgeoning entertainment operations," the first time it is seeing a drop since at least '09, when the firm started disclosing annual targets. Wang said that his firm is "diversifying away from property -- currently Wanda’s biggest revenue generator" -- because it is "not a long-term growth business" (BLOOMBERG, 1/17). FINANCE ASIA's Julie Zhu reported Wanda has been "diversifying away" from its property business in recent years, "partly through a sustained overseas acquisitions spree." It bought "almost everything" from a 20% stake in Atlético Madrid for $49M in Jan. '15 to U.S. theatre chain AMC Entertainment for $2.62B in '12. By way of example of the int'l brands he will target, Wang "pointed to the first-ever Ironman events" that Wanda plans to host in three Chinese cities this year, after acquiring the Florida-based World Triathlon Corp. in '15. Other media-related acquisitions include Switzerland-based sports marketing company Infront Sports & Media for $1.19B in Feb. '15 (FINANCE ASIA, 1/18).
