NEW YORK (TheStreet) -- Dick Clark Productions was acquired by China's Dalian Wanda Group for $1 billion on Friday, the America production company is the force behind the Golden Globe Awards and competition show 'So You Think You Can Dance'. The purchase also gives the company the rights to the holiday special 'New Year's Rockin' Eve'.
CNBC's Power Lunch hosted Hollywood Reporter executive editor Matthew Belloni this afternoon. He was there to discuss the acquisition in more detail. Hollywood Reporter parent company Prometheus Global Media is the seller of Dick Clark Productions.
Dalian Wanda chairman Wang Jianlin has been scooping up properties in Hollywood recently, the company owns AMC Theaters and in January acquired Legendary Entertainment for $3.5 billion. The company also announced a movie partnership with Sony Pictures back in September.
CNBC's Michelle Caruso-Cabrera asked Belloni if this deal is a good decision for Wanda or just a new round of "dumb money."
"I think that remains to be seen," he responded. "But the difference between those situations and this situation is [that] China has the market to back up the investment. Meaning it will soon become the largest movie going market in the world. It's got amazing growth potential and it sees its investment in Hollywood not just as a place to put money, to make money in America, but as an investment in the Chinese entertainment industry for decades and decades to come."
These investments are about more than just making money, Belloni said. It's about education and putting that knowledge to good use. China wants to know how the American entertainment market works in order to import that back to China and serve its own people.