(Bloomberg) -- Apollo Global Management Inc. acquired a $760 million equity stake in Legendary Entertainment LLC, the studio behind recent films such as “Dune” and “Godzilla vs. Kong.”
The bulk of the money will be used to acquire shares from majority owner Dalian Wanda Group, Legendary Chief Executive Officer Joshua Grode said Monday, without providing specifics. Some of the funds will be used to boost film and TV production.
The investment is the latest in a wave of transactions involving production companies, as streaming services such as Netflix Inc. crank up their content spending and private equity firms see an opportunity to invest in the industry. Blackstone Inc. has put some $2 billion behind Candle Media, which has snapped up actress Reese Witherspoon's production company. Amazon.com Inc. is in the process of buying Metro-Goldwyn-Mayer.
Legendary said 2021 was its most profitable year, and the company plans a number of new projects, including a sequel to “The Texas Chain Saw Massacre” coming out on Netflix in February.
Legendary was founded by financier Thomas Tull in 2000. He sold the company to Chinese real estate and entertainment conglomerate Dalian Wanda for $3.5 billion in 2016.
Wanda has struggled since with problems in its real estate portfolio and challenges in its movie theater operations due to the pandemic. While the company remains Legendary's majority shareholder, Grode said he will gain more operational autonomy as a result of the deal.
Apollo partner Aaron Sobel added his company will continue to invest in Legendary, either to help with acquisitions or to finance film and TV projects.
“The value of content is only going up,” Sobel said in an interview. “The goal is to use our money to grow this business.”
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