Chinese Investors Bought These Iconic American Companies
America is home to many companies that have truly become trailblazers in their respective industries. From General Electric appliances to General Mortors cars, all of these thriving businesses help buoy the US economy – but even these giants need to get their money from somewhere.
Investments come from across the globe, but the burgeoning economy in China means that American companies are vulnerable to foreign takeovers, or open to foreign investments, depending on your perspective. If that means saving a floundering brand, then it may be for the best. Read on to find out which of Uncle Sam’s most influential companies are backed by Chinese businesses – some names might surprise you.
Sea World
Headquarters: Orlando, FA
Bought By: Zhonghong Zhuoye
Headquarters: China
The SeaWorld theme park chain has been going for 56 years, for better or for worse. The parks were owned by Busch Entertainment Group, but this all changed in 2009 when they were sold to Blackstone Group.
Blackstone held onto the venture until 2017 when they sold the majority of their stake in a public offering. SeaWorld was hurting ever since the release of the 2013 film Blackfish by CNN Films, so this buyout was advantageous to both sides.
One of the buyers was Zhonghong Zhuoye. Two of the executives, Yoshikazu Maruyama and Yongli Wang, became board members once the deal was completed. Plans were soon unveiled in a bid to generate $14 million in profit for the theme parks over the following three years.
General Electric – Appliances Division
Headquarters: Boston, Mass.
Bought By: Haier
Headquarters: Qingdao, China
General Electric may have started out as a relatively small brand when it was founded in 1892, but the company has grown exponentially since then. Now, GE has its fingers in a lot of pies, from aviation and healthcare to power and venture capital. It’s a titan.
Many Americans find the brand appealing because it has a “Made in America” stamp on its products, however, the appliances wing of the company has been owned by Chinese company Haier since 2016. Haier bought GE appliances for $5.4 billion, a recording breaking sum at that time. The products are still made in the USA, but the decisions are made in China.
It might come as a surprise to many considering just how long the company has been around. However, it just goes to show that when it comes to making money, it really doesn’t matter where the money comes from – as long as it’s coming.
AMC
Headquarters: Leawood, Kansas
Bought By: Dalian Wanda Group
Headquarters: Beijing, China
AMC cinemas have been around for 100 years, providing movie lovers with a wonderful, relaxing experience watching the latest blockbuster hits. AMC is prolific for many reasons, not least because it’s the largest movie theatre chain in the world.
AMC might be short for American Multi-Cinema, but in reality, Chinese company Dalian Wanda Group was the majority stakeholder from 2012-2018. This did change slightly when Silver Lake Partners made a $600 million investment back in 2018, but Wanda Group still calls the shots when it comes to making decisions at the executive level.
Next time you’re tucking into your popcorn and getting ready to watch a movie at one of their locations, it might be worth sparing a moment to think about how China helped keep AMC going. It shouldn’t be a surprise, given how much money Chinese investors pour into the movie industry each year.
Cleveland Cavaliers
Headquarters: Cleveland, Ohio
Bought By: Investor Group led by, Jianhua Huang
Headquarters: Beijing, China
Basketball team the Cleveland Cavaliers burst onto the scene in 1970 with thanks from their sponsors. The team continued to grow in the game over the decades, with backing from Goodyear Tire and Rubber Company. However, in 2019, they got some overseas investors, too.
The Cavaliers signed a deal with Jianhua Huang, a Chinese businessman that previously made deals with the New York Yankees and other teams throughout America. Huang reportedly bought a 15% stake in the Cavaliers. It’s not unusual for sports clubs to have outside investors from overseas.
LeBron James is popular in China, however, he left by the time the deal was finalized. Something tells us that LeBron didn’t mind too much, considering how much money he’s making with the Lakers. Whether the Cavaliers miss him or not is a different story!
General Motors
Headquarters: Detroit, Michigan
Bought By: Shanghai Automotive Industry Corp (Joint Venture)
Headquarters: Shanghai, China
General Motors holds the distinction of being America’s largest automobile manufacturer. As such, it’s also one of the biggest companies of its kind in the entire world, which certainly makes it profitable and appealing.
While General Motors isn’t owned by a Chinese company, it does rely on its partnership with Shanghai Automotive Industry Corp to keep the money rolling in. Both of the companies formed a joint venture in 1998. SAIC sells companies under the General Motors name, even if customers don’t realize it. SAIC has its headquarters in Shanghai, while GM has theirs in Detroit.
At its core, General Motors still remains a very American brand with American values, but every company needs a helping hand sometimes. In this case, it’s a beneficial partnership that allows the brand to experience the best of both worlds.
Spotify
Headquarters: Luxembourg, Stockholm, and NYC
Bought By: Tencent Holdings Ltd
Headquarters: Shenzhen, China
Spotify is such a part of everyday life now that it’s difficult to remember a time when we couldn’t listen to the songs we want at the drop of a hat. The company was first founded in 2006, providing listeners with a way to stream their favorite music. Although it came from Sweden, Spotify has traveled a lot since then.
Back in 2017, Tencent Holdings and Spotify bought a stake in each other of roughly 10%. This joint venture helped Spotify crack into the Chinese market, while Tencent expanded its already large portfolio. It was a partnership of convenience for Spotify, who wasn’t strong enough at that point to dive into the Chinese market alone.
By partnering up with Tencent, aka one of the largest companies in the world, Spotify put itself at a distinct advantage. Tencent executives also have the uncanny ability to spot a successful venture from a mile off, so to them, it was just another day at the office.
Tesla
Headquarters: Palo Alto, California
Bought By: Tencent Holdings Ltd (5% Stake)
Headquarters: Shenzhen, China
Elon Musk might be the brains behind Tesla and the majority shareholder with 21.7%, but he isn’t the only one pumping money into the automotive company. There are plenty of shareholders, including Chinese company Tencent Holdings Ltd. Tencent isn’t just into music, but a variety of industries.
Tencent is the world’s largest video game company and one of the largest social media companies, making it a force to be reckoned with. In 2019, it had a net income of $95.8 billion, so whatever they’re doing, they’re doing it right. At the moment, the company is still on the up and up.
As for Tesla, the brand is more than just a luxury car manufacturer. The success of the company arguably gave Musk the capital he needed to launch his other projects, including SpaceX. When it comes to technology, we have a lot to thank Tesla for.
21st Century Fox
Headquarters: New York City
Bought By: Bona Film
Headquarters: Beijing
The glittering lights of Hollywood and the looming presence of 21st Century Fox has been part of the American dream since the days of Marilyn Monroe, but the company itself is no longer 100% American.
In 2014 Beijing’s Bona Film bought 19% of Fox for $70 million. While it’s still majority-owned by Americans, the 19% stake is nothing to scoff at. Rather, it means that Chinese investors will have a substantial say in the future productions of 20th Century Fox.
The following year, Bona poured in $235 million into a slew of upcoming movies that the movie studio was producing. Through the financing body TSG, Bona was able to help several blockbusters get off the ground. TSG had done it in the past with movies like The Martian and X-Men Days of Future Past.
Smithfield Foods
Headquarters: Smithfield, Virginia
Bought By: WH Group
Headquarters: Hong Kong
When it comes to producing pork-based products, Smithfield Foods reigns supreme. The company has been going since 1936 when it was created by Joseph W. Luter and his son. The business grew steadily over the years to become one of the largest in the industry, with over 500 farms in America alone.
Back in 2013, WH Group bought Smithfield foods for the astronomical sum of $4.72 billion. At that time, it was the most expensive acquisition made by a Chinese company in America. So, while Smithfield’s HQ might be in Smithfield, Virginia, the company is actually run from Luohe in Henan province.
Smithfield Foods can be found all over the country in stores like Walmart, so WH Group knew they were making a wise investment. After all, clothes and other wares might go out of fashion, but Americans will always need to be fed.
Hilton Hotels
Headquarters: McLean, Virginia
Bought By: HNA Group Co Ltd
Headquarters: Haikou, China
Hilton Hotels & Resorts has been operating since 1919 thanks to founder Conrad “Nicky” Hilton. From a handful of simple locations, Hilton became a worldwide name with 586 hotels in 85 countries by 2018. Today, Hilton hotels are all over the world.
In 2016, China’s aviation and shipping titan HNA Group paid $6.5 billion for a 25% stake in the hospitality chain, becoming the biggest shareholder. This was the second purchase that year for HNA who also bought Carlson Hotels Inc. in a bid to spread its wings into the hotel industry. At the time of the purchase, Hilton Hilton was worth around $26 billion.
While 25% isn’t 100%, it certainly makes a difference. Hilton will always remain a distinctly American brand thanks to pop culture history, but does it make a difference to guests to know the business isn’t rooted in Uncle Sam anymore? The jury’s out on that one.
Brookstone Inc
Headquarters: Peterborough, New Hampshire
Bought By: Sanpower Group Corp; General Electric Capital Corp; Sailing Capital Management Co Ltd
Headquarters: Nanjing, China; Connecticut, United States; Shanghai, China
Brookstone Inc. started out as a mail-order business selling special tools that were hard to find in the mid-60s. From there it started selling items like remote control toys, alarm clocks, and much more. As of 2018, there were 34 locations in America.
The company fell on hard times in 2014 when it was forced to file for bankruptcy under Chapter 11, but Chinese companies Sailing Capital and Sanpower came forward and bought it for $173 million. Thankfully, this purchase and a large injection of cash saved the company from going under completely. Brookstone came out of bankruptcy in July 2014.
However, not everything was sunshine and rainbows from thereon in. Four years after the purchase Brookstone filed for bankruptcy again, closing all of its US locations. Now, only airport stores and its website remain. It just goes to show that it takes more than cash to make the dream work.
WeWork
Headquarters: New York City
Bought By: Legend Holdings Corp
Headquarters: Beijing, China
In recent years, shared workspaces have become more chic and on-trend than ever, especially for freelancers or companies just starting out. WeWork capitalized on this trend when it was conceived 10 years ago. Now, it manages over 4 million square meters of co-working space.
However, it hasn’t always been smooth sailing for the business, who desperately needed some capital in 2016. As a result, Beijing-based company Legend Holdings Corp poured over $430 million into WeWork as a “new partner.” CEO of Legend’s Hony Capital John Zhao said, “Our investment in WeWork is both strategic and obvious.”
The partnership seemed to work, keeping WeWork on the path to success when it looked like it was doomed to fade into obscurity. Cash injections make all the difference, especially when it comes to businesses that are still relatively young.
Sotheby’s
Headquarters: New York City
Bought By: Taikang Life Insurance Co Ltd
Headquarters: Beijing, China
What does a luxury broker of fine and decorative art and a life insurance company have in common? The answer is more complex than you might think. Sotheby’s was founded in London in 1744 before setting up shop in New York City and opening locations around the world.
In 2016, Chinese life insurance company Taikang Life was announced as Sotheby’s newest majority shareholder. Taikang held that position until 2019 when the company was bought by French-Israeli titan Patrick Drahi. It’s unclear what happened to Taikang’s 13.5% stake or if they’re still in partnership with Drahi.
The initial deal was a shock to most people given the quintessentially trans-Atlantic reputation of the business. Sotheby’s has been portrayed in numerous movies and TV shows as a place for the aristocracy and blue blooded gentry to sell their wares. This idea didn’t quite seem to fit its new identity as a Beijing-owned company.
Snapchat
Headquarters: Venice, Los Angeles
Bought By: Tencent Holdings Ltd
Headquarters: Shenzhen, China
Taking a picture with a silly filter has never been so popular thanks to Snapchat. The company was founded by Evan Spiegel and Bobby Murphy in 2011, but neither one would have realized how popular it would become. At the moment, Snapchat is valued at over $20 billion.
Back in 2017, Tencent extended its reach to Snapchat, too. The tech giant poured in over $2 billion for a 10% stake in the company, hoping to see a tidy return from its investment. On the flip side, Tencent used its tech expertise to develop the augmented reality Snapchat uses even further.
With the rise in other apps like TikTok, Snapchat isn’t quite as popular as it once was. That doesn’t mean that it isn’t still a jewel in Tencent’s crown though, given how many people have the app on their phones.
Starplex Cinemas
Headquarters: Dallas, Texas
Bought By: Dalian Wanda Group Corp Ltd
Headquarters: Beijing, China
Starplex never had the same power in the industry as AMC did, with only 34 locations across America. As a result, many Americans never set foot in a Starplex theater because there just weren’t any around. The chain was bought by AMC in 2015 for $175 million, with many locations turned into AMC Classics.
As we discussed earlier, AMC Theaters is largely controlled by the Dalian Wanda Group Corp Ltd. As Starplex faded into obscurity when the last of the theaters were changed over to AMC in 2017, the company was swallowed by AMC and Dalian to become another cog in the machine.
Any remaining Starplex theaters turned into AMC Classic locations, erasing Starplex off the map forever. It was a blow to many fans of the nostalgic chain considering the name had been around since 1995. Movie lovers saw some huge blockbusters at a Starplex over the years.
Lionsgate
Headquarters: Santa Monica, CA
Bought By: Hunan TV
Headquarters: Changsha
Lionsgate has been making movies since 1997, producing hits like The Hunger Games, What to Expect When You’re Expecting, American Psycho, and more. In 2015, Lionsgate and Hunan brokered a $375 million deal that saw the Chinese company taking 25% of Lionsgate’s projects for the following three years.
This enormous quarter stake in the company will no doubt have ramifications for years down the line. Movies that benefited from the arrangement included Now You See Me 2, Age of Adeline, Gods of Egypt, and many other titles.
Lionsgate commented, “This agreement reflects our strategy of teaming with entrepreneurial partners to expand our global operations in key markets while underscoring our commitment to a business model that mitigates risk.”
Volvo
Headquarters: Gothenburg, Sweden
Bought By: Geely Auto
Headquarters: Hangzhou
Volvo ©filmbildfabrik.de / Shutterstock.comVolvo ©filmbildfabrik.de / Shutterstock.com Volvo may be a Swedish-born company, but it has a long history in America. AB Volvo sold Volvo Cars to Ford in 1999, but ten years later the business would change hands again. This time, it was Chinese company the Geely Holding Group that came knocking.
During its time at Ford, Volvos were marketed as higher-end, luxury vehicles along the lines of the more affordable Mercedes and BMW models. Alas, after the financial crisis of 2008, the market simply wasn’t there, and Ford was looking for a way out.
Geely bought Volvo for $1.68 billion. The company has remained owned by them ever since. The union proved fruitful. Within 5 years, Volvo was back on top, selling 5 million cars for the first time in its operating history. Together, Geely and Volvo have continued to make strides and grow the brand.
Lyft
Headquarters: San Francisco, CA
Bought By: Didi Kuaidi
Headquarters: Beijing
Lyft ©Jonathan Weiss / Shutterstock.comLyft ©Jonathan Weiss / Shutterstock.com Lyft and Uber have been rivals for many years, which is why Lyft’s partnership with Chinese company Didi Kuaidi was made all the sweeter. The two companies struck a deal in 2015, joining forces to share riders at home and overseas.
Didi put in $100 million in a bid to help both companies become stronger in the battle against Uber. While Uber has come under fire for several issues since its inception, including a toxic company culture, it’s Chinese-owned competitor is often lauded for treating its drivers better, in the US and abroad.
Interestingly, Didi is backed by Tencent and Alibaba, making it a force to be reckoned with in China already. At the time, Didi had triple the presence in China as Uber did, making it a super strong contender.
Airbnb
Headquarters: San Francisco, CA
Bought By: CIC
Headquarters: Beijing
Airbnb ©Daniel Krason / Shutterstock.comAirbnb ©Daniel Krason / Shutterstock.com Airbnb seems like an American company through and through. It started as a simple idea between founders Brian Chesky, Joe Gebbia, and Nathan Blecharczyk before expanding into a true titan of the hospitality industry.
Back in 2017, the company secured a $100 million investment from China Investment Corp. The idea was beyond unusual, expecting people to rent out strangers apartments or homes instead of staying in hotels, but it went over like gangbusters practically overnight.
The 10% stake would help Airbnb expand in other territories while also helping to support locations it already served. At the time, Airbnb was worth $31 billion. The investment didn’t stop the company from taking a hit during the 2020 pandemic though when it was forced to lay off 25% of its staff.
Headquarters: San Francisco, California
Bought By: Tencent
Headquarters: Nanshan District, Shenzhen
Reddit first popped up online 15 years ago, growing to become a place where users can find information on niche subjects, or simply find a sense of community. Billed as a social media news site, the platform was created by Steve Huffman, Aaron Swartz, and Alexis Ohanian.
Ohanian, is the most public-facing co-founder of the online platform, also notable for his marriage to world champion tennis player Serena Williams. While he is no longer on the board at Reddit, it is only because he chose to step down from his role to be replaced by a black board member in a move that serves to model how big companies can participate in social justice.
At the start of 2019, Tencent invested $150 million into the site, but the details of the deal remain undisclosed. We don’t know exactly what percent the company got for their large cash injection, but the partnership helped Reddit’s value jump to $3 billion from a previous valuation of $1.8 billion.
Segway Inc
Headquarters: Bedford, New Hampshire
Bought By: Ninebot Inc
Headquarters: Beijing, China
Segway Inc ©Gints Ivuskans / Shutterstock.comSegway Inc ©Gints Ivuskans / Shutterstock.com Standing on two wheels and whizzing around seemed like something out of Back to the Future a couple of decades ago, unless you own a motorbike. Segways became very popular over the past few years, but when Beijing-based company Ninebot bought Segway in 2015 for $80 million, things got better.
Ninebot was able to push the technology to try and make Segway a bigger presence in the robotics and technology industry. In 2018, plans to move production out of New Hampshire to China were announced, but it was later said that the majority of production would stay in Bedford.
While moving the production out of New Hampshire would’ve been a sorry state of affairs for the local economy, it’s also an almost inevitable move. Production costs in China and overseas are much lower than they are in America, but let’s hope Segway stays true to its roots.
Warner Music
Headquarters: New York
Bought By: Tencent
Headquarters: Nanshan District, Shenzhen
Warner Music ©Chrispictures / Shutterstock.comWarner Music ©Chrispictures / Shutterstock.com Warner Music is a huge name in the recording industry, with its HQ in the Big Apple. As one of the three biggest labels (alongside Universal Music Group and Sony) its impact on the industry can’t be underestimated.
American company Access Industries holds the majority stake in the company with 86.3%, but Tencent holdings owns 1.6%. On paper, 1.6% sounds like a minute figure, but in reality, it’s still a sizable amount. The company bought its $200 million stake in the New York-based business in mid-2020.
Interestingly, Tencent also has stakes in Universal. While having small stakes in many companies may seem like a less influential path than owning large stakes in fewer companies, Tencent has managed to assert dominance by dipping its toes in several industries, from entertainment to technology.
The Waldorf-Astoria Hotel
Headquarters: McLean, Virginia
Bought By: Anbang Insurance Group
Headquarters: Beijing, China
The Waldorf-Astoria Hotel ©Sergey Kohl / Shutterstock.comThe Waldorf-Astoria Hotel ©Sergey Kohl / Shutterstock.com If you’re making a trip to New York, staying at the Waldorf-Astoria is a true taste of luxury. Not only is it an institution, but it’s also a part of American history. While the company is managed by Hilton Worldwide, it was bought by the Anbang Insurance Group of China in 2014 for $1.95 billion.
That extravagant price made it the most expensive hotel ever sold. Anbang made some big changes to the Astoria, including making some of the rooms into condos. This Chinese company has also looked at buying several other American-owned businesses over the years, including Starwood Resorts.
While The Waldorf might be owned by China, it’s good to know that Hilton has a hand in the day-to-day operations. Hilton itself is a well-established, iconic American brand that the public knows, loves, and trusts – that goes a long way in this day and age. But, Hilton isn’t exactly 1005 American-owned, either.
IBM: Personal Computer Divison
Headquarters: Armonk, New York
Bought By: Lenovo
Headquarters: Quarry Bay, Hong Kong
IBM ©LCV / Shutterstock.comIBM ©LCV / Shutterstock.com As far as technology companies go, IBM has gone from strength to strength to dominate the market. Since its conception in 1911, the business has gone on to work on computer hardware, software, consulting services, invent the floppy disc, and more. The advancements the company has made are undeniable.
Back in 2005, announced that its Personal Computer Division had been acquired by Lenovo, who paid $1.25 billion for the pleasure. The Chinese business poured a lot of money besides that into IBM too. According to the statement, “Additionally, Lenovo will assume approximately $500 million of net balance sheet liabilities for IBM.”
That kind of money is almost impossible for any business to refuse, even one as famous as IBM. Japan and China are known as technology meccas, so perhaps it makes sense that Lenovo would want to expand its reach even further.
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Chinese Investors bought these iconic American Companies
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