Chinese Company Buys AMC Theaters; Possible Blow to Shane McMahon's Co.

Shane McMahon is the Chairman and CEO of YOU on Demand, which offers customers in China movies on demand. The company has been struggling financially and Shane recently loaned the company $3 million dollars after making an initial investment of $4 million dollars in 2009.

The LA Times reports that a Chinese company has purchased AMC theaters which will provide the Chinese access to potentially acquiring rights to many more US based movies. First showings in a theater may hurt McMahon's on-demand business. The article follows:

Wanda Group of China buys AMC Entertainment

The owner of China’s largest movie theater circuit took a big leap forward into the U.S. market, acquiring AMC Entertainment Inc., the nation’s second-largest theater chain, the latest in a flurry of high-profile deal-making between the countries’ entertainment industries.

Dalian Wanda Group, a Chinese conglomerate, said in a statement that it had reached an agreement to acquire AMC’s 5,034 screens in 346 theaters in the U.S. and Canada.

For Wanda, the acquisition of AMC gives the Chinese theater operator a pipeline into two of the world’s largest theater markets, giving it more clout in negotiating with major Hollywood studios that are eager to expand into the rapidly growing Chinese market. The AMC acquisition fits China’s strategy of forming alliances with American companies to expand its homegrown entertainment industry...More?

source: latimes.com