|Prei Dy |||Mar 11, 2017 12:39 AM EST|
(Photo : Getty Images) Dick Clark Productions, owner behind the Golden Globes Award, has officially called off its takeover deal with China' Dalian Wanda.
Dalian Wanda's $1 billion deal with Dick Clark Productions, the company behind the Golden Globe Awards, has officially been "terminated," Eldridge Industries confirmed on Friday.
Eldridge, the owner of Dick Clark Productions, said the agreement was scuttled because "Wanda failed to honor its contractual obligations." And because of this, it filed a motion in Delaware's Chancery Court to "compel release of the balance of escrowed funds to which it is contractually entitled given Wanda's failure to consummate the sale."
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Eldridge seeks to force Wanda to hand over $25 million of a $50 million termination fee that was promised in case the agreement fails to push through. The suit alleged that Wanda initially agreed to close the sale by mid-January; however, it only paid half the breakup fee to extend its deadline to the end of February, according to The Hollywood Reporter. But Dalian Wanda still failed to carry out its obligation and pay the remainder of the breakup fee on the extended deadline.
Dalian Wanda, owned by China's richest man, reached a takeover agreement with Dick Clark in November. During that time, Chinese regulators are also limiting capital flight and instituting rigorous oversight of major foreign transactions. US lawmakers, on the other hand, also expressed concerns of China's increasing influence in Hollywood.
Deadline also noted that the real estate giant is also grappling with a slowdown on its main business. It only recorded a 6.7 percent growth in 2016, the lowest in over 25 years. Its revenues also slid down to 14 percent in January 2016, higher than its forecasted 12 percent drop.
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