Just now, Wanda “fired” another overseas asset.

March 15，AMC Entertainment Holdings (AMC), the largest theater operator in the United States, stated，After record loss of $4.6 billion in 2020，Dalian Wanda Group has given up its controlling interest in the company。

AMC disclosed in the annual report，As of March 3, 2021，Wanda’s shareholding and voting rights in AMC dropped to 9.8%，But Wanda Group is still the largest shareholder of AMC。

Under the epidemic in 2020，AMC closed nearly 1,000 theaters worldwide，Heavy losses，Even once fell into bankruptcy。Annual report display，AMC’s net profit attributable to parent companies in 2020 suffered a huge loss 45.USD 8.9 billion (approximately RMB 29.8 billion)，Operating income is only 12.US$4.2 billion，Down 77% year-on-year.29%。

Darkest Hour，Wanda’s reduction in AMC holdings is more like a helpless stop-loss move。2012，When Wanda acquired AMC，A total of US$3.1 billion has been paid (approximately RMB 20.1 billion)，Today, AMC’s total market value is only US$1.5 billion。

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AMC, which Wang Jianlin has high hopes for，I have to say “goodbye” to Wanda Group after all。

March 15，AMC CEO Adam Allen said on the earnings call，After suffering a huge loss of US$4.6 billion，Wanda Group has given up its controlling stake in AMC，Shareholding and voting rights have been reduced to 9.8%，But Wanda Group still has 2 board 188bet app seats in AMC，still has a certain influence on the management of AMC。

According to public information，AMC was founded on June 6, 2007，Mainly engaged in film screening business，Is the world’s largest movie theater chain，There are 620 theaters and 7967 screens in the United States，358 cinemas and 2866 screens in Europe，It is also the world’s largest IMAX and 3D screen operating company。

Wanda’s reduction in AMC holdings began in 2018，Wanda sold part of its AMC shares for the first time for US$600 million，After sale，Wanda’s shareholding ratio in AMC dropped from 60% to approximately 38%。

2020 under the influence of the epidemic，Wanda continues to reduce its shareholding ratio in AMC。As of the end of 2020，Wanda’s shareholding ratio in AMC has dropped to 23.1%，Voting rights also reduced to 47.7%。while period，AMC stock price has been falling，The cumulative decline for the whole year exceeds 70%，Obviously，The price at which Wanda reduced its holdings is not ideal。

Although since 2021，AMC stock was once sought after by American retail investors，The stock price soared up to 860%，But Wanda is still reducing its holdings in AMC。February 2021，Wanda will convert all of its Class B ordinary shares of AMC into Class A ordinary shares，Resulting in further reduction of its voting rights。

According to AMC’s annual report，As of March 3, 2021，Wanda’s shareholding and voting rights in AMC further dropped to 9.8%，Completely lost control of AMC，But Wanda Group is still the largest shareholder of AMC。

To this，AMC CEO Adam Allen said，Because there is no controlling shareholder，Now AMC will be like most other public companies，Managed by a wide range of shareholders。

Is Wang Jianlin’s “small goal” useless?

The relationship between Wanda and AMC began in 2012，According to disclosure by Wanda 188bet online sports betting Group，May of that year，Wanda and AMC sign merger agreement，The total amount of mergers and acquisitions is US$2.6 billion，Includes two parts: purchasing 100% equity of the company and assuming debt，At the same time Wanda promises，The operating capital invested after the merger and acquisition shall not exceed US$500 million，Wanda paid a total of US$3.1 billion (approximately RMB 20.1 billion) for this transaction。

When acquiring a majority stake in AMC，The reason Wang Jianlin gave for the acquisition was: "Wanda wants to become a big company，Not just China，It is a big company in the world，This deal will help Wanda become a truly international theater owner。”

USD 3.1 billion M&A amount，Not only set a new record for overseas mergers and acquisitions by domestic enterprises at that time，Wanda has become the largest cinema chain operator in the world。

After completion of merger and acquisition，The confident Wang Jianlin even proposed a "small goal": by 2020，Wanda wants to occupy 20% of the global film market。Now it seems，This “small goal” seems a bit out of reach。

The second year after Wanda took over (2013)，AMC turns a loss into a profit，And landed on the New York Stock Exchange。After listing，AMC has launched a strategy of crazy mergers and acquisitions，successively with 9.£2.1 billion、USD 1.2 billion、9.Acquired European Odeon for US$300 million & UCI Cinemas、American Carmike Cinema Line Company、Nordic, the largest theater chain in Northern Europe。

Thanks to this，Wanda’s cinema chain scale once reached its peak，AMC stock price also hit a record high in 2016，reached 27.USD 67，The total market value once reached 37.USD 800 million。

However，After the big mergers and acquisitions，AMC’s debt surges，U.S. box office revenue continues to decline 188bet Online Sports Betting and Casino in 2017，AMC begins to turn from profit to loss，Loss 4.USD 8.7 billion，AMC stock price fell more than 53% that year。

From now on，AMC stock price collapsed，2020 will be the most serious epidemic in history，The United States has become the country with the largest number of confirmed cases in the world，Offline entertainment is suspended across the board，Almost all AMC theaters are closed and closed，And lasted for a long time。According to Wang Jianlin，AMC closes 1,000 theaters worldwide，Among them, there are more than 630 in the United States。

Period，AMC was once rumored to be bankrupt，Despite being refuted，But it cannot change the reality of huge performance losses。According to the financial report，AMC’s net profit attributable to parent companies in 2020 suffered a huge loss 45.USD 8.9 billion (approximately RMB 29.8 billion)，Operating income is only 12.US$4.2 billion，Down 77% year-on-year.29%。

Picture operation suspended，Huge performance loss，International evaluation agencies even directly brought AMC theaters into the"Junk rating"，Wanda Group can’t sit still anymore。Period from October to December 2020，Wanda’s shareholding ratio in AMC increased from 37.7% dropped to 23.1%，2021，Wanda even gave up control of AMC。

In order to pay off debts, Wanda held a “clearance sale”

2020，It can be said that Wang Jianlin’s "international dream awakened" year。

July 30, 2020，Wanda Hotel releases announcement，To be used as 2.$700 million price，Sold 90% of the shareholders’ equity in the Chicago property project held by its subsidiary company。To this point，All Wanda’s overseas real estate projects have been cleared。Also in July 2020，Wanda Sports Announcement，Completed sale of World Triathlon，The transfer price is 7.USD 300 million。

Previously，Wanda has successively sold off real estate projects in Chicago，Luxury properties in Beverly Hills and London，Hollywood Studios Entertainment 188bet app Company，Spanish football club...

The reasons behind Wanda’s sales，Mainly to reduce debt，Ease cash flow。

Everyone knows，Wanda Group’s most important core business is: commercial real estate (Wanda Plaza)、Wanda Movie、Wanda Sports、Wanda Hotel，Almost all industries affected by the epidemic。

Among them，Wanda’s film and television business is most affected，According to Wanda Film’s performance forecast，Net profit loss in 2020 is 61.500 million-69.500 million yuan，Far more than the 4.7 billion yuan loss in 2019。

Compared with theaters，Commercial real estate business represented by Wanda Plaza，Although the entire line is not shut down，But the negative impact is also relatively large。The first quarter of 2020 was the hardest hit by the epidemic，The net operating cash flow of Wanda Commercial Management Group (Wanda’s core subsidiary) is -3.9 billion yuan，This is very rare in Wanda’s history。

Meanwhile，Wanda Commercial Management is burdened with huge debts。According to Wind data，2021，Wanda Commercial Management’s public debt due is 367.500 million yuan，As of the end of the third quarter of 2020，Wanda Commercial Management’s interest-bearing liabilities are 1809.900 million yuan。

Therefore，Not difficult to understand，Why Wanda did not hesitate to survive despite the market crash，Continue to sell overseas assets。

*thisSource: Securities Times Network，Author: Wu Leding，Original title: "Wanda gives up control of the world’s largest cinema，Zeng spent 20 billion，Leaving now sadly》.