Dalian Wanda to acquire sports marketing firm Infront Sports & Media AG
10 Feb 2015
Dalian Wanda Group Co, controlled by Chinese billionaire Wang Jianlin, plans to acquire sports marketing company Infront Sports & Media AG from private equity firm Bridgepoint for €1.05 billion ($1.2 billion), Bloomberg reported.
The acquisition would ''significantly increase the future impact of the Wanda Group in the culture and entertainment industry,'' Wang said in a statement. Infront was well positioned to actively support China as it bid for major international sports events, according to Wang.
Wanda would buy Infront, run by FIFA president Sepp Blatter's nephew, after agreeing to the acquisition of a 20-per cent stake last month in reigning Spanish soccer champions Atletico Madrid.
The deals added to Wang's holdings that included AMC Entertainment Holdings Inc, the second-largest US cinema chain, and UK yachtmaker Sunseeker International Ltd.
Bloomberg quoted Yang Renwen, an analyst at Founder Securities Co, as saying by phone that the deal would help Chinese sports enter the global market as also bid for major events. Infront would help connect the Chinese sports industry to the outside world as Beijing bid for the rights to the 2022 Olympic Games, according to Yang.
According to the statement today, Zug, Switzerland-based Infront's existing senior management team led by chief executive Officer Philippe Blatter would continue to operate unchanged.
Meanwhile, AFP reported that the Chinese property and entertainment conglomerate was seeking expansion of its influence in the global sports business, as Beijing bid for the 2022 Winter Olympics while rumours swirled that it could seek to host the 2026 football World Cup.
Wang said in a joint statement that Infront "is best positioned to actively support China in its bidding efforts for major sports events".
After the announcement, Wang cited Chinese president Xi Jinping's three-step plan for developing football in China, "To qualify for a World Cup, to host a World Cup and to win a World Cup."
He added, he planned to take Infront public, but did not say when or where he would list the company.
With the deal Wang, who recently bought 20 per cent of Spanish football champions Atletico Madrid -- and his company took a firm stride to the front row of the global sports business.
