- FILM & PEOPLE
- Korean Film News
Korean Film News
CJ E&M Eyes Merger with CJ O Shopping
Jan 29, 2018
- Writerby Pierce Conran
Media and Online Shopping Division of CJ Group Set to Align
CJ E&M, Korea’s top purveyor of entertainment, is planning to merge with CJ O Shopping, the home shopping and e-commerce division of the CJ Group. The companies were originally split in 2010 but are set to reunite following changes in the global media market. Pending approval from shareholders at a meeting in June, the merger is scheduled to go ahead in August of this year.
Comprising film investor and distributor CJ Entertainment, theater operator CJ CGV (which it holds a majority share in) and television channels such as tvN, Mnet and OCN, CJ E&M is the leading media content enterprise in Korea.
The move comes amidst a sea change in the world’s media business, in the wake of Disney’s acquisition of 21st Century Fox and the rapid rise of internet giants such as Netflix, Amazon and Alibaba.
The combined enterprise is expected to generate revenue amounting to KRW4.4 trillion (USD 4.1 billion) this year, with operating profit forecast to hit KRW 350 (USD 326 million). The joint venture anticipates 15% annual growth through 2021.
Much of the uptick is expected to come from their operations overseas. Currently foreign sales account for 17% of their combined revenue, but that figure is expected to reach 32% in the next three years. CJ O Shopping has been operating in China since 2004 and has since expanded to Southeast Asian countries such as the Philippines and Malaysia. Meanwhile, CJ E&M has gained a foothold in China, Vietnam, Indonesia and most recently Turkey through the theater operations of CJ CGV.