Endeavor [NYSE: EDR] Announces CJ ENM Buys 80% Stake in Endeavor Content

Endeavor Group Holdings, Inc. [NYSE: EDR] disclosed that CJ ENM has purchased the 80% stake of the scripted business of U.S.-based global premium content studio, Endeavor Content. CJ ENM has bought the 80% stake, including management rights. The deal was authorized by CJ ENM’s board of directors on November 19, 2021 (KST).

It has been disclosed that Endeavor will maintain 20% of the scripted portion of the business, in addition to preserving 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 would continue to head the studio as co-CEOs. The two companies expect the deal will execute early in the first quarter of 2022.

This purchase is the largest M&A for CJ ENM, which first made an investment in DreamWorks and stepped foot into the content business 26 years ago. Through the acquisition of Endeavor Content, CJ ENM intends in order to strengthen its presence in the global market and content distribution channels.

Furthermore, CJ ENM will also be able to extend its original IP collection to include that of Endeavor Content. The library and portfolio that will contain a wide range of IPs from all over the world will support CJ ENM’s plan to start its OTT platform, TVING, globally. CJ ENM can also speed up its penetration into the global content market by making full use of Endeavor Content’s broad network across various distribution channels.

Transaction Overview

CJ ENM will buy Endeavor Content from its parent company Endeavor Group Holdings for $775 million USD in total profit at an enterprise valuation of $850 million USD. It includes $655 million USD to Endeavor and a grant of $120 million USD of capital to Endeavor Content’s balance sheet. It suggests a post-money equity valuation of $970 million USD.