Such a shift of business strategy is in line with the big-spending conglomerate's overseas investment in football clubs and film studios, the sectors that Wang says are promising but are yet to be developed in the Chinese mainland.
The two companies, in particular, highlight a "strategic partnership" in film and other sectors in the statement.
"Sunac's investment in LeEco may fit well and create synergies with Wanda's ambition of developing innovative and asset-light business. This may make the deal a winning growth formula for both parties," said Hannah Li Wai-han, a strategist at UOB Kay Hian (HK).
Sunac Chairman Sun Hongbin, as quoted by Caixin, said the money used to close the deal is completely out of Sunac's own pocket.
Dismissing investor concern over a possible new financial burden imposed on Sunac, Sun revealed that the company recorded a cash balance of 90 billion yuan on its balance sheet in the first half of 2017, and expects an annual turnover of more than 300 billion yuan.
Wang said all proceeds from the deal would be used to repay loans and lower its debt-to-asset ratio. The conglomerate is looking to pay off the major chunk of its bank loans by the year-end and clear all the debt within the coming three years.
The deal may mark a step closer for Dalian Wanda Commercial Properties, the property unit of Wanda Group, to relist on the mainland and cash in on higher valuations on domestic markets after it delisted in Hong Kong last year.
"Wanda is still trapped in a logjam of firms lining up for IPO approval," said Li. "The conglomerate took a hit from a sell-off last month, which may make it dispose of some of its non-core assets to address the liquidity concern."
