CJ ENM Acquires 80% Stake in US Endeavor Content, Producer of 'La La Land'

[Asia Economy Reporter Kim Suhwan] CJ ENM is reportedly close to acquiring an 80% stake in Endeavor Content, a major U.S. film production company known for producing movies such as "La La Land" and "Once Upon a Time in Hollywood."

According to the Wall Street Journal (WSJ) on the 18th (local time), the two parties are negotiating a deal in which CJ ENM will acquire an 80% stake in the film and drama content business of Endeavor Content, a subsidiary of the U.S. entertainment company Endeavor Group, while Endeavor will retain the remaining 20% stake.

WSJ reported that the value of Endeavor's film and drama content business to be acquired by CJ ENM in this transaction is estimated to be approximately $900 million to $1 billion (about 1.0634 trillion to 1.1816 trillion KRW).

Although the negotiations have not yet been finalized, WSJ stated that "an official announcement regarding the negotiation results could be made within a few days at the earliest."

Earlier this year, Endeavor announced plans to reduce its stake in Endeavor Content to resolve conflicts between its affiliated talent agency William Morris Endeavor and the Writers Guild of America (WGA). The WGA expressed concerns about potential conflicts of interest because Endeavor simultaneously owns a talent agency and a production company under its umbrella.

The transfer of the content business stake from Endeavor to CJ ENM appears to be in line with this announcement.

Endeavor Content's notable works include "La La Land," "Once Upon a Time in Hollywood," as well as films such as "The Revenant," "The Guilty," and "Call Me by Your Name."

With CJ ENM, the investor and distributor of the film "Parasite," acquiring Endeavor Content, it is expected that CJ's strategy for entering the U.S. market will accelerate further.

In February of this year, CJ ENM also formed a strategic partnership with the famous Hollywood production company Skydance Media, along with its drama production subsidiary Studio Dragon, and as part of this partnership, acquired a minority stake in Skydance.