Legendary Entertainment has bought out Chinese multinational conglomerate Wanda Group’s remaining 60% equity interest in the studio known for the “Dune” and “Godzilla” franchises.
The transaction was funded entirely by Legendary using cash on its balance sheet. Legendary emphasized that it retains “significant excess liquidity” after the transaction to fund its current business and planned expansion. In 2023, the studio secured a five-year, $800 million credit facility led by J.P. Morgan.
“The purchase of Wanda’s remaining ownership interest is the next strategic step in Legendary’s long-range growth plan. With our outstanding creative team, headed by Mary Parent, developing, producing and marketing high-quality film and television and working with leading artists remains core to our expansion,” Legendary CEO Josh Grode said in a statement. “I want to thank and acknowledge Wanda, who has been an outstanding and supportive shareholder since 2016, and I congratulate them on this transaction.”
As part of the move, the board will be evenly split between management and private equity firm Apollo, which made a $760 million minority equity investment in the company back in 2022.
“We are thrilled to expand our relationship with Legendary and further support Josh and Mary and the incredibly talented team,” Apollo partners Aaron Sobel and Lee Solomon added. “We continue to see Legendary as an outstanding platform for future growth that is well positioned to thrive as the entertainment industry continues to evolve.”
Wanda acquired a majority stake in Legendary back in January 2016 for $3.5 billion, which was considered China’s largest cross-border cultural acquisition ever at the time.
Over the past several years, the Beijing-based Legendary East has
marketed and distributed key films, including the “Dune” and “Godzilla” franchises, and will continue to do so as the studio’s office in China.
Legendary has grossed over $20 billion at the global box office and is experiencing its most profitable year to date. Together, “Dune: Part Two” and “Godzilla x Kong: The New Empire” earned over $1.28 billion at the global box office, with the latter becoming the highest-grossing film in the multi-billion-dollar franchise.
Since Grode’s appointment as CEO in 2018, other major titles from Legendary have included the Millie Bobby Brown- and Henry Cavill-led “Enola Holmes” and its sequel, and Apple TV+’s “Drops of God” and “Monarch: Legacy of Monsters,” which has been renewed for a second season and has multiple spinoffs ordered.
Upcoming titles include “A Minecraft Movie” starring Jason Momoa and Jack Black; live-action/animation hybrid comedy “Animal Friends” starring Momoa, Ryan Reynolds, Aubrey Plaza and Dan Levy; a film adaptation of “Street Fighter” and an untitled Alejandro G. Iñárritu film starring Tom Cruise, as well as additional event films from Denis Villeneuve and the Monsterverse.
Legendary was represented in the transaction by O’Melveny & Myers, while the studio’s management was represented by Morgan Lewis Bockius. Wanda was represented by Freshfields Bruckhaus Deringer.
