Korea’s CJ ENM, the Asian media giant known for backing projects like the landmark Oscar-winning film ParasiteEndeavor Content has been sold to,
The company pledged to pay $775m for 80% ownership of the scripted-production outfit last November. Chris Rice and Graham Taylor will continue to oversee the operation as Co-CEOs. This division has sold, financed and packaged more than 100 films and series, including breakouts like La La LandAnd Killing Eve.
According to today’s public filing, the $785 deal for the scripted division includes “management rights”The firms state that Endeavor is “looking to produce more than 40 movies and series by 2023.”
Endeavor has retained the scripted part of the business as well as certain film and documentary sales and financing consulting services.
“Endeavor Content will be the key driving force for CJ ENM’s global growth,” remarked Kang Ho-Sung, CEO, CJ ENM. He concluded: “CJ ENM plans to produce and distribute its own content for viewers all around the world with Endeavor Content, now part of the multi-studio, as the global basecamp.”
Backlash by Writers Guild of America against packaging set off the transaction. The guild waged an extensive campaign against the practice that the same company could produce a series of films or television shows and also represent its talent. It called this anti-competitive conflict. Major talent agencies were persuaded by the guild to sign a franchise agreement that imposed a 20% limit on the production entities that could be owned.
The sale was anticipated for several months, following expressions from numerous interested parties. Endeavor Group Holdings still owns a unscripted wholly-owned division that is not included in the CJ deal.
Business-wise, the divestiture of most of Endeavor Content will help trim Endeavor’s debt load, which has concerned some Wall Streeters since its initial public offering in 2021.
Ari Emanuel, CEO Endeavor Group Holdings has a longstanding relationship with Miky Lee (CJ Group vice chair) dating back to 1995. An agent at that time, Emanuel helped broker the company’s $300 million investment in DreamWorks SKG, a deal spearheaded by Lee.
ParasiteCJ’s landmark film, “The Endurance” grossed $259M worldwide. This was a significant milestone and represents an increase in its activities in Hollywood.
CJ-Endeavor was one of our nine international trends to watch out for in 2022.
Andreas Wiseman contributed this report.