Todd Boehly's Eldridge Industries has apparently had enough.
Dalian Wanda, the Chinese real estate and media conglomerate, failed to make scheduled payments as part of its agreement to acquire Dick Clark Productions, forcing the $1 billion deal to be terminated, Eldridge Industries said in an emailed statement on Friday.
Dick Clark, a Los Angeles TV production company that produces the Golden Globe Awards, the American Music Awards and other entertainment events, will continue to operate as part of Eldridge's holdings which include the Hollywood Reporter, Billboard and a much larger array of real estate properties and financial services.
Dalian Wanda, controlled by China's richest man, Wang Jianlin, had agreed in November to buy Dick Clark Productions, an acquisition that would have added to the Chinese company's already formidable list of Hollywood properties including the theater chain AMC Entertainment (AMC) - Get Report and Legendary Entertainment, a producer of big-budget films.
Boehly, a former Guggenheim Partners president, said last year the sale of Dick Clark was the result of unsolicited interest from Dalian Wanda. Dick Clark Productions was controlled by the affable, longtime host of American Bandstand, who died in 2012 at age 82.
But the deal has proved impossible to close either because of Dalian Wanda's inability to transfer funds out of China or a declining level of interest by the company to actual make the deal. Speculation for the impasses has focused on the Chinese government's apparent opposition to approving large capital outflows given that the country's foreign exchange reserves fell below $3 trillion last month, triggering red lights.
A more hostile attitude in Washington toward Chinese acquisitions of U.S. companies may also have been a factor.
Either way, Eldridge Industries, a holding company of real estate, insurance and media properties controlled by determined that continuing to wait on Dalian Wanda was no longer tenable.
"Eldridge's affiliate terminated the agreement this week after Wanda failed to honor its contractual obligations," the holding company said in Friday's statement. "Eldridge's affiliate also has filed with the Delaware 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."
A source close to the transaction had told TheStreet last month the deal was expected to close in the coming weeks.