Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that AMC, the largest movie theater chain in the United States, just revealed that China’s Wanda Group has given up its control of the company after AMC’s record loss of US$4.6 billion in 2020. The Wanda Group acquired AMC in 2012 with US$3.1 billion. Now Wanda’s holds only 9.8 percent AMC’s shares with voting power. However, Wanda still keeps two seats on the AMC board and remains the largest shareholder. Currently AMC has no controlling shareholder. Last year due to the deep impact of Covid-19, AMC attendance dropped by 90 percent. Since last December, AMC has raised more than $1 billion to sustain its operations. With the AMC acquisition, Wanda once planned to grab 20 percent of the global movie theater market. Later it also acquired Odeon & UCI, Nordic and Carmike. However, the situation has gone downhill since 2017. Citing high operating costs. Wanda has been losing money across all of its businesses and started selling off all its assets outside of China.
Source: Sina, March 16, 2021