Acquisition will serve as a new growth engine
towards CJ ENM’s vision as a ‘global total entertainment
company’
CJ ENM, leading entertainment company originated from Korea,
announced that they have entered into a definitive agreement to
acquire an 80% stake of the scripted business of U.S.-based global
premium content studio, Endeavor Content, from its parent company
Endeavor Group Holdings (“Endeavor”)(NYSE: EDR) for $775 million
USD in total proceeds at an enterprise valuation of $850 million
USD, including $655 million USD to Endeavor and a contribution of
$120 million USD of capital to Endeavor Content’s balance sheet
(implying a post-money equity valuation of $970 million USD).
The deal to acquire the 80% stake, including management rights,
was approved by CJ ENM’s board of directors on November 19, 2021
(KST). Endeavor will retain 20% of the scripted portion of the
business, in addition to retaining the non-scripted portion of the
business, as well as certain documentary and film sales and
financing consulting services. Endeavor Content’s Graham Taylor and
Chris Rice will continue to lead the studio as co-CEOs. The two
companies anticipate the deal will close early in the first quarter
of 2022.
This acquisition is the largest M&A for CJ ENM, which first
invested in DreamWorks and jumped into the content business 26
years ago. Through acquisition of Endeavor Content, CJ ENM plans to
solidify its presence in the global market and content distribution
channels. CJ ENM will also be able to expand its original IP
collection to incorporate that of Endeavor Content’s. The library
and portfolio that will hold a wide range of IPs from all over the
world will support CJ ENM’s plan to launch its OTT platform, TVING,
globally. CJ ENM will also be able to further accelerate its
penetration into the global content market by making full use of
Endeavor Content’s extensive network across various distribution
channels. This will create a full value chain for CJ ENM to
distribute its top-notch dramas, movies, and entertainment programs
to the world. New doors will open for the creative pool, including
producers, writers, etc., that will be able to collaborate on
multiple levels to create global mega-hit contents.
“Four years ago, we set out to build a talent-first studio that
prioritized greater creative freedom and ownership,” remarked Ariel
Emanuel, CEO, Endeavor. “Graham Taylor, Chris Rice and the entire
Endeavor Content team delivered on that promise, and this
transaction further underscores the enduring value of talent and
premium content.” Continued Emanuel, “Having known Miky Lee for
more than 25 years, I’m confident that CJ ENM will be excellent
stewards of the studio, accelerating and amplifying its projects on
a global stage.”
“We are excited to announce this deal with Endeavor Content, a
company that is growing at a remarkable speed in the U.S. and
European markets,” remarked Kang Ho-Sung, CEO, CJ ENM. “We are
confident that this deal will create synergy between both
companies, globally acknowledged for their production capabilities
and list of hit IP properties. Continued Kang, “At the end of the
day, CJ ENM strives to become a major global studio that
encompasses content that appeals to a global audience – like this
deal with Endeavor Content, we will continue to expand our presence
in the global market.”
Leading entertainment company CJ ENM is best known for its
recent multiple Academy Award-winning “Parasite,” CJ ENM’s credits
also include television series “Crash Landing on You,” “Goblin: The
Lonely and Great God,” “Hospital Playlist,” and films
“Snowpiercer,” “Miss Granny,” and Tony Award winning Broadway
production, “Kinky Boots.” Headquartered in Seoul, Korea, its
entertainment division engages in a wide array of businesses across
the industry spectrum including media content, music, film,
performing arts, and animation. CJ ENM’s critically acclaimed
content has been enjoyed by a global audience through various media
platforms and remake versions.
This deal is another addition to CJ ENM’s expanding presence in
the global market. CJ ENM is currently co-producing a drama series
with U.S.-based media company Skydance Media as part of its
strategic partnership made early last year. CJ ENM is also involved
in the production of a TV adaptation of award-winning movie
“Parasite” set to broadcast on HBO. Additionally, CJ ENM is the
company behind “I Can See Your Voice,” a popular entertainment show
that has been broadcast and/or remade in more than 23 regions, as
well as 2021 Emmy nominated drama “It’s Okay to Not Be Okay” and
music reality show “I-Land.”
“We are thrilled for this next chapter as we seek to unlock even
greater value for talent and our producer partners,” said Graham
Taylor and Chris Rice, Endeavor Content’s co-CEOs, in a joint
statement. “With the addition of CJ ENM, our mission to empower
creators and foster an inclusive environment that promotes diverse
content on a global scale only grows stronger.”
Endeavor Content launched in 2017 as a platform and talent
agency-agnostic production, advisory, sales, and distribution
studio that puts artists, creators, and producers first. Endeavor
Content’s mission later expanded to become a more inclusive studio
that champions and supports content and creators who engage diverse
audiences. Since its inception, Endeavor Content has owned,
financed, and/or sold more than 125 films and television series
that have garnered more than 69 Emmy wins and nominations and 59
Academy Award wins and nominations. Major hits include “In the
Heights” and “Just Mercy” for Warner Brothers, “Book Club” for
Paramount Pictures, “Blue Miracle” for Netflix, and “Joe Bell” with
Roadside Attractions. The studio has also made its mark
internationally, handling global distribution for hit series
including “Killing Eve,” “The Night Manager,” “Normal People,” and
“Nine Perfect Strangers.” Upcoming film projects include “The Lost
Daughter,” Maggie Gyllenhaal’s critically acclaimed feature
directing debut for Netflix, and Michael Bay’s highly anticipated
“Ambulance” for theaters. On the television side, the studio will
premiere several new series from top talent in the first half of
the year. These include Ben Stiller’s “Severance,” Nicole Kidman’s
“Roar” for Apple TV+, “Wolf Like Me” for Peacock, starring Josh Gad
and Isla Fisher, Michael Mann’s “Tokyo Vice” for HBO Max, and Amy
Schumer’s “Life & Beth” for Hulu.
J.P. Morgan acted as exclusive financial advisor to CJ ENM on
the transaction. O’Melveny & Myers acted as legal advisor to CJ
ENM.
The Raine Group acted as exclusive financial advisor to Endeavor
on the transaction. Latham & Watkins LLP acted as legal advisor
to Endeavor.
About CJ ENM
CJ ENM is a leading entertainment company originated from Korea.
Since 1995, the company has engaged in a wide array of businesses
across the industry spectrum including media content, music, film,
performing arts, and animation, providing its top-notch original
content to various media platforms. CJ ENM has created, produced
and distributed globally acclaimed contents including
Cannes-winning film Parasite, Tony Award-winning musical Kinky
Boots, record-breaking Korean box office hits Roaring Currents,
Extreme Job, Ode to My Father, along with sought-after television
series such as Mr. Sunshine, Guardian: The Lonely and Great God,
Grandpas over Flowers, I Can See Your Voice and more. To offer the
best K-Culture experiences worldwide, CJ ENM presents KCON, the
world’s largest K-culture convention & festival celebrating
Hallyu and Mnet Asian Music Awards (MAMA), Asia's biggest music
awards. With regional offices in Asia, Europe and the U.S., CJ ENM
currently employs over 3,600 people. For more information, please
visit: http://www.cjenm.com
About Endeavor
Endeavor is a global sports and entertainment company, home to
many of the world’s most dynamic and engaging storytellers, brands,
live events and experiences. The company is comprised of industry
leaders including entertainment agency WME; sports, fashion, events
and media company IMG; and premier mixed martial arts organization
UFC. The Endeavor network specializes in talent representation,
sports operations & advisory, event & experiences
management, media production & distribution, experiential
marketing and brand licensing.
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Matt Levine endeavor@brunswickgroup.com
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