CJ ENM acquires Endeavor Content in the US… Expanding global influence (Samsung Securities)

Samsung Securities predicted on the 22nd that CJ ENM will further expand its influence in the global market.

In particular, it is expected to acquire an 80% stake, including management rights of U.S. content producer Endeavor Content, and strengthen its ability to plan and produce global-oriented content.

Investment opinion 'buy' and target stock price remained at 225,000 won.

"CJ ENM announced on the 19th that it will acquire 80% (8 million shares) of its stake, including Endeavor's management rights, for KRW 915.2 billion ($ 7,752.8 billion)," Samsung Securities said. "In order to establish a stable business operation and cooperative relationship, 20% of the remaining stake will continue to be held by Endeavor Group and major management and core personnel such as CEO Hyun will remain the same.".

"The total corporate value is set at about 1.1 trillion won," Samsung Securities said. "The purpose of the acquisition is to strengthen global content production capabilities and build a multi studio. When the acquisition is completed on Dec. 31, it will be counted from the first quarter of 2022.".

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com