[Special Stock] CJ ENM Surges 6% on News of 'Suspension of Physical Division'

[Asia Economy Reporter Ji Yeon-jin] CJ ENM has been showing a surge of over 6% since the early trading hours on the 9th. The news that the plan to spin off the content division announced last November has been temporarily suspended due to opposition from minority shareholders appears to have driven the stock price up.

As of 9:25 a.m. on the same day, CJ ENM was trading at 133,700 KRW, up 6.11% (7,700 KRW) from the previous day. After announcing the plan last November to separate the content division and establish a new corporation, the stock price plummeted, hitting a 52-week low of 118,000 KRW on the 28th of last month.

CJ ENM stated, “While the plan to establish the second Studio Dragon continues, we have decided to revise the studio establishment plan due to shareholders’ concerns about the physical spin-off and the rapidly changing regulatory environment. Our priority is to protect shareholders’ interests and strengthen CJ’s content business competitiveness.”

Currently, CJ ENM operates through the entertainment division, which handles content production and distribution, and the commerce division, which runs the home shopping business. CJ ENM shareholders were concerned that if the content division were spun off physically, it would weaken the company’s competitiveness.

Previously, in November last year, CJ ENM announced plans to establish a new corporation through a physical spin-off to build a multi-studio system for content production targeting the global market and to maximize revenue businesses such as intellectual property (IP) distribution.

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