Saudi Arabia’s Public Investment Fund (PIF) is planning to acquire a $700 million stake in US movie studio Legendary Entertainment, informed sources said.
The Saudi sovereign wealth fund is eyeing investment worth around $500 million to $700 million in Legendary, the sources told Reuters, adding that there are discussions to appoint a financial advisor for the transaction.
The PIF further noted that China’s Dalian Wanda Group, which owns the majority stake in Legendary, will be open to finishing the deal as it is facing pressures from the authorities to offload overseas assets in a bid to reduce debts.
“The deal could face resistance from some Legendary executives concerned about the impact a PIF investment would have on the studio’s brand and its ability to attract top talent,” Reuters reported citing the sources.
Saudi Arabia is planning to carry out mega investment in the entertainment sector over the coming period as part of plans to diversify its economic resources and reduce dependence on oil revenues.