A stake in Hollywood film studio, Legendary Entertainment, could soon be up for grabs. Sources exclusively telling Reuters that its owner, China's Dalian Wanda Group, is exploring a partial sale. Led by billionaire Wang Jian Lin, Wanda spent years building an overseas empire including a football team and prime property developments.
But lately, it's been selling them off piece by piece under pressure from Beijing. Reuter's Kay Woo explains.>> China wants to make sure that it has stable control of its capital outflow. Cuz since mid 2015, a lot of Chinese companies were buying overseas assets like crazy. And they spent a lot of money and they also built on a lot of debt.
So China wants to make sure that it has firm control. That's why, it has urged all the companies to make sure that they will have to start reducing overseas holdings.>> Earlier this year, Wanda sold that stake in top flights Spanish Football Club Atletico Madrid. And dumped real estate in Sydney and London.
Besides exploring the sale of a minority stake in Legendary Entertainment, sources say the conglomerate is considering a full sale of sports marketing firm, Infront Sports and Media, and World Triathlon Corp, owner of the Ironman Triathlon's.>> Wanda has been China's most acquisitive companies in sectors such as media and sports, which are listed as the restricted areas actually earlier this year by China as they plan their national development and research commission.
So I think Wanda realized that it has to really retreat back to its core businesses.>> It's a seed change for Wanda's ambitious chairman. Not too long ago Wang Jian Lin was laying plans to build a China Hollywood film Nexus, and topped China's rich list. Today, he's leading a retreat that may leave Wanda with only a fraction of its overseas holdings.
Sources say the company is now focusing on its commercial property, finance, and cinema businesses in China.