Wanda no longer acquiring Legendary

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Citing changes in market conditions and the interests of minority shareholders, Wanda Cinema Line, the publicly-traded exhibition unit of Wang Jianlin’s Dalian Wanda Group, has shelved plans for a 37.2B yuan ($5.6B) reorganization of entertainment assets. That includes a previously announced plan for Shenzhen-listed Wanda Cinema to acquire Legendary Entertainment from the parent group which purchased Thomas Tull’s studio for $3.5B in January. According to local reports, Wanda Cinema said tonight in China that the parties involved believe market conditions are not mature enough to continue pushing forward at this time.

Because of Legendary’s volume, which includes activities in the U.S. and China, a decision has been made that the studio should finish internal integration first and run independently for a period of time. That would give it the opportunity to show earnings stability with 2016 expected to be profitable. The door has been left open to return to the reorganization later down the road and the company is expected to clarify the current situation further later this week.

Thoughts as this may show lack of confidence.