More On: China
While you may believe that the iconic American companies you see on a daily basis are wholly American, many are really owned by Chinese investors.
Continue reading to find out which American behemoths are backed by foreign businesses.
1. AMCAMC, which stands for American Multi-Cinema, has been in business for almost a century and is based in Leawood, Kansas. Dalian Wanda Group, located in Beijing, acquired the largest investor in 2012, granting them executive-level decision-making authority. Wanda put $2.8 billion towards the historic transaction.
AMC is owned by a number of investors and is the world's largest cinema corporation. Silver Lake Partners of Menlo Park, CA made a $600 million investment in 2018, giving the corporation some executive influence, although far less than Wanda.
When asked if they will assist AMC as it navigates the Covid economic issue, Wedbush Securities analyst Michael Pachter stated:
"They 'could,' but it would need financial outflow from China to a foreign enterprise, and Wanda was constrained in its capacity to further invest a couple of years ago by the Chinese government."
As a result, AMC will struggle to stay viable indefinitely without the assistance of its Chinese investors.
2. General MotorsGeneral Motors, headquartered in Detroit, Michigan, is the country's largest automaker. While the corporation is not controlled by a Chinese company, its profitability is dependent on its relationship with Shanghai Automotive Industry Corp (SAIC). The two auto titans joined together in 1998 to develop SAIC-GM, a Chinese brand with a 6 million square-foot factory in Shanghai.
While GM remains immensely popular in the United States, its additional sales in China through SAIC assist to bring in income on a regular basis.
3. SpotifySpotify, which was founded in Sweden, currently has offices all around the world, including New York City. While its CEO and founder own a major portion of the firm, Chinese investor Tencent Interests Limited LLC purchased 10% of the company in 2017, while Spotify purchased 10% of Tencent's holdings.
Spotify wasn't strong enough to compete in the Chinese market at the time and required assistance to break in. Tencent will not be listed on this list for the first time–they can detect a successful initiative from a mile away.
4. SnapchatSnapchat's founders had no idea how successful the app would become in the long run. Just one year ago, the app had 187 million active users. Despite being founded in 2011, it did not go public on the New York Stock Exchange until 2017.
Unsurprisingly, its stock was extremely popular–the business sold almost 200 million shares at $17 each, with the remainder sold to investors.
Although Facebook tried to purchase Snapchat for $4 billion, the firm declined. Instead, Tencent Holdings purchased a big stake in yet another internet behemoth. The Chinese investor holds around 14% of Snapchat's stock.
5. Hilton HotelsHilton has been a household brand in the United States and other nations since 1919. HNA Group, a Chinese aviation and shipping conglomerate, purchased a 25% interest in 2016 for $6.5 billion. As a result of this transaction, Hilton now has two Chinese directors on its Board of ten.
HNA has been attempting to sell its stake in the company for the previous two years with no result.
6. General Electric Appliance DivisionGeneral Electric operates in a variety of sectors, and their appliance division is based in the United States but uses worldwide parts (and with domestic parts whenever possible). However, in 2016, Chinese investor Haier paid $5.4 billion for the company's appliance segment.
While all items are still manufactured in the United States, the concepts are developed in China. Because GE has been in business since 1892, it is distinct from other American brands.
While investors may not always have a say in where a product is manufactured, they do have a lot of say in how a company is operated and promoted. When a significant American brand is largely owned by Chinese or other foreign investors, it is risky since they have higher duties in their own country. Due to local requirements, Chinese investors are unlikely to assist AMC during Covid.