CJ ENM mulls selling stake in Studio Dragon
[THE INVESTOR] Korean entertainment giant CJ ENM is considering selling its stake in Studio Dragon, according to industry sources on Aug. 8.
“We are considering how we can utilize our stake in Studio dragon to enhance our competitiveness in the global market,” a CJ ENM spokesperson told The Investor. “But we cannot confirm anything at this point.”
According to industry sources, the company is currently trying to find a deal manger and has sent out requests for proposals to Korean and foreign security firms.
CJ ENM currently is the biggest shareholder with 71.33 percent stake in Studio Dragon. Industry watchers expect that the company will sell around 10 to 20 percent stake to maintain its management rights. Since Studio Dragon’s market cap is 2.58 trillion won (US$2.30 billion), the value of it 20 percent stake is expected to be around 500 billion won.
If the entertainment giant closes a deal, industry sources expect that the money will be used for achieving goals that CJ ENM recently announced.
At the beginning of this month, CJ ENM said that it plans to establish a joint venture, tentatively named Belief, with popular boy band BTS’ agency Big Hit Entertainment. Moreover, it is also considering expansion overseas by acquiring Slovenia-based e-commerce firm Studio Moderna.
Studio Dragon was spun off from CJ ENM in 2016, and since then has created many hit shows including cable drama “Guardian: The Lonely and Great God.”
By Song Seung-hyun (firstname.lastname@example.org)