Hollywood’s relationship with Beijing has taken another hit. In a move that marks the end of an era, Legendary Entertainment and private equity giant Apollo have bought out Dalian Wanda Group’s remaining stake in the studio. Once hailed as a symbol of China’s ambitious foray into Hollywood, the $3.5 billion acquisition of Legendary by Wanda in 2016 now feels like a distant memory.
This buyout, finalized in October 2024, underscores a broader retreat of Chinese capital from the entertainment industry. Legendary CEO Josh Grode, who directly negotiated the deal, framed it as both a strategic and necessary step. “When Wanda reached out to us earlier this year with capital needs, we were presented with a unique opportunity to purchase Wanda’s equity in Legendary at an attractive valuation,” said Grode.
Hollywood’s Evolving Priorities
The timing couldn’t be better for Legendary, which is riding high after Dune: Part Two and Godzilla x Kong: The New Empire grossed nearly $1.3 billion at the global box office. But the decision to buy out Wanda isn’t just about financial gains; it’s about recalibrating for the future.
“As we enter a phase of our strategic growth plan that may include some M&A, removing a foreign entity as a key shareholder reduces transaction-related risks,” Grode explained. With geopolitical tensions between the U.S. and China continuing to simmer, Hollywood studios are rethinking the necessity of Chinese partnerships.
The End of an Era
Back in the 2010s, having a Chinese strategic partner was almost a rite of passage for any Hollywood player looking to tap into China’s lucrative box office. Studios like Legendary leaned heavily on their partnerships to co-produce films, secure funding, and gain access to China’s tightly controlled movie market.
But in recent years, Beijing’s policies have cooled toward Hollywood, and Chinese investors have pulled back. The Wanda-Legendary breakup isn’t an isolated incident; it’s part of a pattern. Earlier this year, Tencent also scaled down its involvement in U.S. entertainment ventures, signaling a broader shift in China’s entertainment investment strategy.
What’s Next for Legendary?
The buyout positions Legendary for greater autonomy as it eyes potential mergers and acquisitions. The studio is entering its next chapter with fewer constraints and a more streamlined ownership structure, which could make it more attractive to partners or buyers.
Hollywood’s reliance on Chinese capital may be fading, but Legendary’s recent success proves that the industry is more than capable of thriving independently. As studios like Legendary look to new markets and investors, one thing is clear: the Hollywood-China honeymoon is over.
