Los Angeles Times Features Manatt’s U.S.-China M&A Activity Study

Entertainment Deals Between China and U.S. to Rise, Survey Says
– Los Angeles Times

The Los Angeles Times interviewed Manatt's Lindsay Conner, co-chair of the firm's Entertainment & Media Practice, on the likely uptick in deal making activity between the U.S. and China over the next year in the entertainment, advertising and digital media sectors. The prediction is one of the key findings from a study commissioned by Manatt and conducted by research firm Mergermarket.

"America has Wall Street and China has a Great Wall, but the wall on both sides is starting to crack," said Conner. "I expect entertainment investment on both sides to steadily rise in the years ahead."

The study was based on interviews with more than 100 American and China business executives, investors and analysts. More than two-thirds of respondents expected to see an increase in deal making between the two countries. Respondents identified movie theaters in China as attractive targets because of a rising middle class and a lack of premium modern theaters. Chinese investors are also attracted to U.S. cinemas, along with social media and multimedia production and distribution companies.

The Los Angeles Times notes that Chinese spending of on acquisition of American companies reached a high of $11 billion in 2012, more than triple the value of the previous year. The paper cites the Dalian Wanda Group's $2.6 billion acquisition of theater operator AMC Entertainment last year as the beginning of the new wave of deal making between the two countries.

U.S. investors have also put nearly $10 billion into Chinese targets, mostly on smaller deals of less than $250 million.

Read the article here