CJ ENM, the entertainment unit of CJ Group, is sprinting into the global content market by acquiring the American production company behind the move “La La Land.”
CJ ENM held a board of directors’ meeting and approved an acquisition of an 80 percent stake in Endeavor Content, including management rights, for $775 million (920 billion won).
CJ Group has strategies to speed up the spread of hallyu (Korean Wave) by securing a production center at Hollywood, the United States, a global pop culture leader.
CJ ENM plans to have a comprehensive Korean content portfolio encompassing films, dramas and K-pop by completing its acquisition of SM Entertainment by year-end.
Endeavor Content is a global studio of the U.S. entertainment juggernaut Endeavor Group Holdings. Endeavor Content produced and distributed hit movies, such as “La La Land” and “Call Me By Your Name” and BBC’s popular dramas “Killing Eve” and “The Night Manager.”
A poster to publicize the movie “La La Land,” produced by Endeavor Content. CJ is acquiring Endeavor Content.
CJ ENM plans to expand K-content like the remaking of its own Korean hits to target global consumers by making the most of Endeavor Content’s global networks. It is the largest M&A since CJ ENM started the film business.
CJ ENM’s acquisition of Endeavor Content came after CJ Group Chairman Lee Jay-hyun delivered a video message on Nov. 3 in which he revealed CJ Group’s new vision.
Chairman Lee designated “C.P.W.S”: Culture, Platform, Wellness and Sustainability as CJ’s four growth engines. He decided to invest 10 trillion won in the four sectors by 2023. He promised to overhaul personnel management to nurture core manpower and offer extraordinary rewards.
CJ ENM has released plans to build its own large-scale production systems in Korea and abroad, such as the establishment of a new studio. CJ ENM aims to grow into a global content maker on the back of K-content, which is all the rage across the world.
CJ ENM has been seeking to enter the Hollywood, a global content center, based on the achievements of its Oscar winning film “Parasite.”
Initially, CJ ENM plans to aggressively utilize intellectual properties, owned by Endeavor Content, such as “La La Land.” A CJ ENM official said the company plans to raise profitability by creating diverse business models on top of distributing of IPs.
CJ ENM plans to max out the utilization of the content to ramp up the competitiveness of “Tving,” which is priming for its entry into the global OTT service market.
CJ ENM plans to distribute K-content it owns and produce local versions of the content. CJ ENM and Endeavor Content plan to join forces in the planning and developing of CJ ENM’s works.
CJ ENM President Kang Ho-sung said, “Synergetic effects will be created if Endeavor Content’s planning and production capabilities are combined with CJ ENM’s production knowhow of K-content.”
CJ ENM aims to become a global content company by embracing Eastern and Western culture ultimately, he said. CJ ENM has a reputation in the global content market.
In particular, the company has received a love call from American production companies following the production of Parasite.
CJ ENM has produced about 40 films, including “Ending is Beginning,” which was leased last year. CJ ENM is remaking its hit films “Sunny” and “Extreme Job” with Universal Studio and Heartsbeats, respectively.
CJ ENM is making the new film “Past Lives” with Hollywood production company A24. Producer Lynda Obst of “Interstellar” and “Sleepless in Seattle” has teamed up with CJ Group Vice Chairman Lee Mi-kyung as a producer in producing the tentatively named work “K-pop, Lost in America.”
CJ ENM is trying to enter the U.S. drama market. The company is jointly producing “Terminator,” the American version of the tvN drama “Hotel Del Luna” with Skydance Media, the production company of “Mission Impossible.”
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