CJ ENM, a 'global content commerce convergence company' that officially launched on July 1st, starts listing its new post-merger stocks on the KOSDAQ from the 18th, exactly six months since the announcement of the merger on January 17th.
Existing CJ E&M stocks, which had been suspended from trading since June 28th, were delivered as CJ ENM stocks on the 17th, and their trading resumed on the 18th. Shares of CJ ENM, the merged entity, were also issued to the shareholders of CJ O Shopping, whose shares had not been suspended from trading. Overall, about 21.93 million shares from CJ E&M (approximately 15.9 million shares) and CJ O Shopping (approximately 6.03 million shares) begin to be traded under the name of ‘CJ ENM.’
The securities industry expects the emergence of CJ ENM to contribute to market stability by ratcheting up demand by institutional investors and large domestic and foreign pension funds in the KOSDAQ market, which has a higher proportion of individual investors. Some predict that through the convergence content commerce industry that CJ ENM strives to develop, CJ ENM will create a new momentum for market growth, including reestablishing the status of the KOSDAQ market, which had been focused on pharmaceutical/bio stocks. CJ ENM's market cap is about KRW 6 trillion (based on the closing price on the 17th), which is expected to make it the second biggest-listed company on the KOSDAQ at once.
In a report titled 'The emergence of a media commerce company with a market capitalization of 5 to 6 trillion won,' Park Seong-ho, an analyst at Yuanta Securities, said, “The company can expect to enjoy full-fledged synergistic effects from the merger when the process of integrating the organization of the merged corporation is completed and its global digital content production capabilities are strengthened.” Kim Hyun-yong, an analyst at e-Best Investment & Securities said in a report on July 9th that tvN's viewer ratings are on the rise and the wavering movie industry is making a breakthrough by strengthening its overseas business. He predicted that given the growth potential of major global media groups such as Netflix and Amazon, the company’s market cap could go up to as high as 10 trillion won once its business vision is achieved.
Currently, CJ ENM is gradually materializing its business plans designed to increase synergy between the two merged business divisions. Dada Studio's V-commerce (video commerce) business, which has 10 million subscribers around the world through various platforms such as Facebook, YouTube, and Instagram, has been reorganized into the ‘Digital Commerce Headquarters’ together with the MCN business, DIA TV. The new entity plans to leap forward as a global Hallyu platform by invigorating Hallyu and V-commerce. Recently, Dada Studio established Asia's largest V-commerce content production center in Vietnam.