CJ Entertainment in group reorganisation

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Corporate News

CJ Entertainment Inc ＣＪ엔터테인먼트, one of Asia's largest film companies, will become part of CJ E&M Corp 씨제이이앤엠 주식회사, a new operating division of South Korean conglomerate CJ Group.

With effect from tomorrow (1 Mar 2011) the South Korean foods-to-cable TV group is to merge the dozen or so individual companies into one entity with four sub-units; film, broadcast TV, online games and music, all headed by HA Dae-jung 하대중.

Katherine KIM 김정아, two years ago promoted to be CJ Entertainment's president, is named as Vice President and head of the film business unit.

The company says that it is targeting revenues of ₩3.11 trillion ($2.76 billion) by 2015 from CJ E&M, up from ₩1 billion last year ($887 million), with the ambition that 30% of that is realised from outside Korea.

Reasons for the reorganisation include economies of scale in purchasing and organisation – human resources and finance functions for example will be merged – and a better balancing of its business portfolio. Film currently only accounts for 12%, compared with broadcast's 52% of revenues, but the target under the five year plan is for film to have grown to 17%.

The new single structure is also intended to lead to the creation of a pool of creative talent and entertainment properties that can be better promoted by all the unit's business lines.

The broadcast unit absorbs both CJ Media and On Media; the online gaming business takes over from CJ Internet while music incorporates Mnet Media.

The stock market listed CJ E&M Corporation has a market capitalisation of approximately ₩2.07 trillion ($1.84 billion) at the recent stock price of ₩54,500.

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