(Yicai Global) April 3 -- China’s commercial real estate colossus Wanda Group Co. has disbanded its internet unit almost one and a half years after setting it up. Wanda Group Chairman Wang Jianlin publicly admitted earlier this year that the subsidiary’s business development was adrift and that it had splurged too much.
Dalian-based Wanda yesterday removed the business segment ‘internet technology’ from its website, meaning Wanda Internet Technology Group no longer exists as an independent division. Wanda Internet reported large layoffs late last and early this year.
At Wanda’s annual conference on Jan. 20, Wang said the unit was straying from its business path. Wanda will go about setting up a new internet tech company and hopes to find world-class internet partners with whom to cooperate this year, he added. Such partners could include Tencent Holdings Ltd. and JD.Com Inc., two internet companies that Yicai Global reported in January had invested in Wanda Commercial Management Group Co.
Wanda Internet’s focus was digital business, smart living, financial technology and public cloud services, an unidentified source told online state news outlet The Paper. Both smart living and public cloud services have closed, and digital business will transfer to the commercial management group. Financial technology may be sold or shunted onto the financial group.
Set up in October 2016, Wanda Internet had planned to raise funds worth USD1.5 billion last year, but that foundered because of dissatisfaction among investment banks with its due diligence results.