CJ Group to Acquire OnMedia

South Korea's CJ Group has acquired OnMedia Corp., a domestic cable-television operator.

CJ O Shopping, a CJ Group affiliate, purchased 55.17 percent in OnMedia stakes held by Orion Corp. for 434.5 billion won ($369 million) on December 24.

The latest acquisition includes stakes owned by affiliated persons such as Chairman Tam Cheol-gon of Orion as well as a 37.39 percent share in Orion.

CJ O Shopping is to finalize a merger and acquisition (M&A) deal after going through administrative procedures such as merger approval by Fair Trade Commission during the first half of next year. The purchase price is to be paid after administrative procedures are complete.

The latest acquisition is forecast to largely influence the nation's media industry.

CJ Group holds eight channels including tvN (total entertainment channel), Mnet (music channel) and Channel CGV (movie channel) and OnMedia holds ten channels including OCN, Catchon (movie), BadukTV and Tooniverse (animation). A combination of these channels is likely to create the largest Multi Program Provider (MPP) with over 30 percent cable ratings.

[written by Sung-ki Jin- Joo-hyun Lee/ edited by Jae-yoon Jung]

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]