CJ ENM, one of South Korea’s leading entertainment companies, is investing £100 billion or approximately $82.3 million in KT Corp.’s media unit, KT Studio Genie. The company aims to establish links for media content so that it can progress globally.
According to The Korea Herald, CJ ENM’s investment in KT Studio Genie was revealed on Monday, March 21 through a business filing. The two companies reportedly signed a memorandum of understanding (MOU) on the same day of filing; thus, the vesting period was set at 90 days after the announcement.
With the money that CJ ENM invests, it will become the shareholder of KT Studio Genie with a stake of about 10%. The two will also engage in other collaborations in the future for the digital music streaming business, and they are expected to discuss those soon.
They will also form a team and set up a committee of executives to oversee the business. No other details were shared about the acquisition agreement.
Either way, the deal will give CJ ENM early distribution rights to original KT Studio Genie content. These are the creations that can be streamed or shown on the entertainment company’s TV channels, such as OCN, tvN, and the Tving streaming platform.
Korea Joongang Daily reported that KT Studio Genie will also co-produce content with CJ ENM subject to the intellectual property of KT’s media arm. The studio has a wide range of media content for production and distribution. Some of its businesses include web novels, webtoons, satellite television network, and music streaming services.
Meanwhile, the deal should help CJ ENM bring more content to the world, and for KT Studio Genie, the new partnership will help it strengthen and expand its content distribution channels using CJ’s extensive network. ENM.
“The cooperation with KT, a leading media platform operator, will be a big boost for CJ’s efforts to become a global entertainment company,” Kang Ho Sung, general manager of CJ ENM, was quoted as saying. Korea Economic Daily after signing the MoU. on Monday with Yoon Kyung Lim, Head of Transformation Division of KT Group.