CJ ENM to acquire 'La La Land' production company

CJ ENM CEO Kang Ho-sung speaks during the press meeting for the group's “CJ ENM Vision Stream” plan at the CJ ENM Center in Seoul in May 31. Courtesy of CJ ENM

By Kim Jae-heun

Local entertainment and media company CJ ENM has signed a stock purchase agreement to take over an 80 percent stake in Endeavor Group Holdings' content business, it said Friday.

The South Korean company agreed with Endeavor to pay 920 billion won ($775 million) for the stake.

Endeavor Content is an American holding company for talent and media agencies that is well-known for producing the popular musical drama film, “La La Land,” in 2016.

Through the acquisition deal, which the CJ Group's entertainment affiliate confirmed Friday, CJ ENM plans to establish a global production base in the United States and secure Endeavor Content's distribution network.

The remaining 20 percent will be held by Endeavor Content, as CJ and Endeavor hope to maintain a cooperative relationship. The suggested acquisition deal is also calling for CJ ENM to acquire all of Endeavor Content's intellectual property (IP). CJ ENM plans to use Endeavor's content on its over-the-top (OTT) digital platform, Tving.

The co-representatives of Endeavor Content, Chris Rice and Graham Taylor, will maintain their positions. CJ ENM and Endeavor Content aim to complete the process by the first quarter of next year.

Endeavor Content has more than 7,000 clients, including world-class artists and athletes, such as Dwayne Johnson and Mark Wahlberg. Last year, it reported 4 trillion won in revenue.

Endeavor was established in 2017 to produce and retail films, TV series and original content for HBO, BBC as well as Netflix, Apple TV+ and Amazon Prime.

Additionally, CJ ENM said that it is working on establishing a separate studio, which will be in charge of managing the company's drama, animation and film content.