[Click eStock] "CJ ENM, Expanding Global Market Influence as a Multi-Genre Studio"

Acquisition of 80% Stake and Management Rights of US Producer Endeavor Content
Samsung Securities Maintains CJ ENM Target Price at 225,000 Won

[Asia Economy Reporter Gong Byung-sun] CJ ENM is acquiring Endeavor Content, a U.S. production company famous for producing the film 'La La Land.' It is expected that CJ ENM's influence in the global market will further increase by establishing a multi-genre studio in the future.

According to Samsung Securities on the 22nd, CJ ENM announced on the 19th that it will acquire 80% of the shares, including management rights, of the U.S. production company Endeavor Content for $775.28 million (approximately 915.2 billion KRW). The remaining 20% stake will continue to be held by the Endeavor Group to ensure stable business operations and build cooperative relationships.

This acquisition was carried out to strengthen global content production capabilities and build a multi-studio system. Endeavor Content is a content production company of Endeavor Group Holdings, which was listed on the New York Stock Exchange (NYSE) on April 29 this year (local time). It is responsible for production, distribution, and licensing of dramas such as BBC's 'Killing Eve' and 'The Night Manager,' Apple TV+'s 'The Dark Days,' and films like 'La La Land' and 'Call Me by Your Name.'

Choi Min-ha, a researcher at Samsung Securities, explained, "CJ ENM's acquisition of Endeavor Content is known to be the largest since CJ Group started its culture and content business," adding, "It is seen as a strategic move to further strengthen global capabilities and establish a multi-studio system."

Additionally, CJ ENM announced through a disclosure that it will establish a new corporation through a physical division. The new corporation plans to establish a separate studio producing various content regardless of genre, including entertainment, drama, film, and animation. The purpose of this physical division is to maximize profit businesses such as establishing a multi-studio system, expanding global content production, and distributing intellectual property (IP).

Accordingly, Samsung Securities maintained CJ ENM's investment opinion as 'Buy' and the target stock price at 225,000 KRW. The closing price on the 19th was 180,400 KRW.

This content was produced with the assistance of AI translation services.