CJ ENM to buy majority stake in Endeavor Content's scripted unit for $775M

South Korean entertainment company CJ ENM Co. Ltd. agreed to acquire an 80% stake in the scripted business of content studio Endeavor Content from its parent entity Endeavor Group Holdings Inc. for $775 million.

The deal, which includes management rights, is based on an enterprise valuation of $850 million and implies a "post-money equity valuation" of $970 million, a Nov. 18 statement said.

CJ ENM expects the acquisition to help boost its global presence and content distribution channels. It will also allow the company to add Endeavor Content's outputs to expand its content portfolio, which can support plans to globally roll out its over-the-top platform Tving.

CJ ENM's board approved the deal, including management rights, with the transaction's completion expected early in the first quarter of 2022.

Following the transaction, Endeavor will retain ownership of 20% of Endeavor Content's scripted business and the whole of its nonscripted business, along with certain documentary and film sales as well as financing consulting services. Endeavor Content's Graham Taylor and Chris Rice will remain at the studio's helm as co-CEOs.

J.P. Morgan Chase & Co. is CJ ENM's exclusive financial adviser on the deal, with O'Melveny & Myers LLP as legal adviser. The Raine Group is Endeavor's exclusive financial adviser on the deal, with Latham & Watkins LLP serving as legal adviser.

CJ ENM joined the content business 26 years ago and has invested in film studio DreamWorks Animation LLC. The former produced Academy Award winner "Parasite," which is set for a TV adaptation on HBO (US), as well as television series "Crash Landing on You," among others.