What Prompted Jack Gao’s Wanda, Legendary Departure?
If China’s Dalian Wanda is going to make a comeback in Hollywood, after weathering its present storms, it will do so without Jack Gao. The polished and high-flying executive this week parted from Wanda, the property to entertainment giant, and from its Hollywood producer subsidiary Legendary Entertainment. Wanda insiders insist that the group maintains a long-term commitment to Legendary, where Gao had been interim CEO since January, and will be back as a major player in Hollywood. But Wanda’s list of problem issues mean that further overseas expansion is not going to happen in the short or medium term. The Chinese government, in a series of ever stronger measures over the past year, has punished the companies that have engaged in “irrational” and “exuberant” foreign acquisitions. Putting restrictions on deal-making in the areas of hotels, entertainment and sports, the measures seem specifically tailored to halt Wanda in its tracks. And without that activity, Gao’s rol...