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[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ ENM will sell all of its stake in Belift Lab, an agency that was established five years ago in collaboration with HYBE, to Hive.
On the 10th, CJ ENM announced on the 10th that it decided to sell its 51.5% stake in Belift Lab to HIVE and signed a stock trading contract. The sale price is 150 billion won.
Belift Lab is an idol agency jointly established by CJ ENM and HYBE in 2018 with a total investment of 7 billion won. At that time, the equity structure was set up so that CJ ENM could have management rights.
CJ ENM converted electronically with an operating loss of 50.3 billion won in the first quarter of this year. In the second quarter results announced on this day, the company continued to suffer losses of 30.3 billion won. The cumulative net loss in the first half of the year rose to 188.8 billion won. U.S. content producer Fifth Season, which was acquired by about 1 trillion won last year, suffered a net loss of 51.2 billion won in the first quarter alone. Securities analysts say the deficit continued in the second quarter, causing overall earnings to fall.
To improve its financial structure, the company sold its content platform plot owned by its subsidiary Dada M&C to its affiliate CJ Olive Young in March this year. Recently, the company has started selecting consultants for securities firms and accounting firms to sell non-core subsidiaries in the media sector, including digital marketing subsidiary Mezzo Media. The investment banking (IB) industry also considers CJ ENM's stake (21.78%) as a potential sale.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
