Shinsegae invests $1bn in Warner Bros. deal as Paramount completes takeover
Version 2: The acquisition has now closed, with Paramount completing the deal and Skydance launching, and later reports added the total deal value of $110 billion, Shinsegae’s roughly 0.9% share and the RB Tentpole investment vehicle.
In short
Shinsegae Group said its unit Shinsegae Property will invest $1bn (about 1.4 trillion won) in the takeover of Warner Bros. led by Paramount Skydance, alongside David Ellison and US investment firm RedBird. Paramount completed the acquisition on Oct. 6 US local time and launched the merged company as Skydance, Inven reported. Shinsegae says it will use Paramount and Warner Bros. content rights — including Mission: Impossible, Star Trek, Top Gun, Harry Potter and Game of Thrones — in its Starfield malls, a planned Hwaseong theme park and possible tie-ups with HBO Max and Paramount Plus.
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Shinsegae Group said on Oct. 6 that its unit Shinsegae Property will invest $1 billion, or about 1.4 trillion won, in the takeover of Warner Bros. by Paramount Skydance. The group said the investment is made together with David Ellison, described by the outlets as Skydance co-CEO and Paramount Skydance chairman, and US investment firm RedBird. [ 1 , 2 , 4 , 5 , 7 , 9 , 10 , 15 , 18 , 19 ]
The transaction closed the same day. Inven reported that Paramount completed the acquisition of Warner Bros. Discovery on Oct. 6 US local time and that Skydance officially launched, combining Paramount and Warner Bros. film, television, streaming, news and sports businesses, with Warner Bros. Games among the units brought in. Bloter had reported earlier that the deal was expected to close on Oct. 6 US local time and that the merged company would launch as “Skydance.” [ 6 , 14 , 16 ]
Outlets differed on the won value of the investment, giving figures of about 1.4 trillion won, about 1.34 trillion won and about 1.3596 trillion won. CBS NoCut News put the total acquisition price at $110 billion and said Shinsegae’s $1 billion is about 0.9% of it. Dong-A Ilbo, citing a disclosure, said Shinsegae Property acquired 100% of RB Tentpole, one of the vehicles set up to fund the merger, on Oct. 3 Korean time, and that the investment equals about 4.1% of E-Mart’s consolidated assets of 33.5036 trillion won; the funds will be raised through financial institutions. Seoul Economic Daily described the structure as an indirect investment through a Cayman Islands fund, RB Tentpole Co-Invest. [ 2 , 10 , 15 , 18 , 19 ]
Shinsegae said it will use Paramount titles such as Mission: Impossible, Star Trek and Top Gun, and Warner Bros. titles such as Harry Potter and Game of Thrones, to build what it calls a platform combining retail and culture. The group plans IP-based experience facilities and themed spaces in its Starfield, Starfield Market and Starfield Village malls, and to use the content in a theme park planned inside Hwaseong’s Star Bay City. [ 1 , 4 , 5 , 6 , 7 , 9 , 10 , 12 , 15 ]
The group also outlined streaming cooperation, saying it could link HBO Max and Paramount Plus — which it said have more than 200 million subscribers — with memberships run by E-Mart and other online and offline affiliates. Longer term, Shinsegae said it is considering co-producing content with Paramount Skydance and Korean originals, and says it aims to become a platform company in Asia’s content market. [ 4 , 5 , 6 , 7 , 10 , 12 , 15 ]
Bloter reported that Shinsegae Property had revenue of 361.1 billion won and operating profit of 176.6 billion won last year, making the investment about 3.9 times its annual revenue, and flagged how the investment will be funded, what equity it brings and how the IP will generate revenue as open questions. Seoul Economic Daily reported that group chairman Chung Yong-jin visited the US late last year to discuss product development using Paramount IP with Ellison, and noted the investment comes as Shinsegae prepares to split E-Mart and its department store business, after a July hotel venture and a March AI data centre venture. [ 6 , 10 , 12 ]
Shinsegae said in its statement: “This investment is not simply an equity investment but a stepping stone for Shinsegae Group to diversify into a new business area combining entertainment,” and that it would “create an opportunity to leap forward as a platform company in the Asian content market.” [ 4 , 5 , 6 , 7 , 10 , 12 , 15 ]
Why it matters
The investment takes a South Korean retail group into global content ownership, tying Hollywood franchises to its malls and a planned theme park. If the streaming and co-production plans proceed, Shinsegae could become a distribution and production partner for Korean content abroad. The documents give no detail on the size of the stake, the financing terms or expected returns, which Bloter flagged as open questions.
Key facts
- Shinsegae Group said on Oct. 6 that Shinsegae Property will invest $1bn, or about 1.4 trillion won, in the acquisition of Warner Bros. led by Paramount Skydance. [ 1 , 2 , 4 , 5 , 6 , 7 , 9 , 10 , 12 , 15 , 18 , 19 ]
- The investment is being made alongside David Ellison, described as Skydance co-CEO and Paramount Skydance chairman, and US investment firm RedBird. [ 1 , 2 , 4 , 5 , 6 , 7 , 10 , 12 , 15 ]
- Inven reported that Paramount completed the acquisition of Warner Bros. Discovery on Oct. 6 US local time and that the merged company launched as Skydance; Bloter had reported the same expected closing and name. [ 6 , 14 , 16 ]
- Shinsegae said it plans to use Paramount titles such as Mission: Impossible, Star Trek and Top Gun and Warner Bros. titles such as Harry Potter and Game of Thrones in its Starfield malls and a theme park planned in Hwaseong’s Star Bay City. [ 1 , 4 , 5 , 6 , 7 , 9 , 10 , 12 , 15 ]
- Shinsegae said it could link HBO Max and Paramount Plus, described as having more than 200 million subscribers, with the memberships of E-Mart and other affiliates, and later co-produce content or Korean originals with Paramount Skydance. [ 4 , 5 , 6 , 7 , 10 , 12 , 15 ]
- CBS NoCut News put the total acquisition price at $110 billion and said Shinsegae’s $1 billion is about 0.9% of it; Dong-A Ilbo gave the same total. [ 15 , 18 ]
- Dong-A Ilbo, citing a disclosure, said Shinsegae Property acquired 100% of RB Tentpole, a vehicle set up to fund the merger, on Oct. 3 Korean time and will invest indirectly through it, with funds to be raised via financial institutions. [ 10 , 18 ]
- Bloter reported Shinsegae Property’s revenue was 361.1 billion won and operating profit 176.6 billion won last year, making the investment about 3.9 times its annual revenue. [ 6 ]
Confirmed by several sources
- Shinsegae Property will invest $1bn, or about 1.4 trillion won, in the Warner Bros. acquisition being pursued by Paramount Skydance. [ 1 , 2 , 4 , 5 , 6 , 7 , 9 , 10 , 12 , 15 , 18 , 19 ]
- David Ellison and US investment firm RedBird are part of the acquisition group. [ 1 , 2 , 4 , 5 , 6 , 7 , 10 , 12 , 15 ]
- Paramount completed the Warner Bros. acquisition and the merged company launched as Skydance on Oct. 6 US local time. [ 6 , 14 , 16 ]
- Shinsegae plans to use Paramount and Warner Bros. intellectual property in its shopping malls and a theme park planned in Hwaseong. [ 1 , 4 , 5 , 6 , 7 , 9 , 10 , 12 , 15 ]
- Shinsegae said HBO Max and Paramount Plus have more than 200 million subscribers and could be linked to its affiliates’ memberships. [ 4 , 5 , 6 , 7 , 10 , 12 , 15 ]
- Shinsegae aims to expand from retail into content and become a platform company in Asia’s content market. [ 1 , 4 , 5 , 6 , 7 , 10 , 12 , 15 , 17 ]
- The total acquisition is valued at $110 billion and Shinsegae’s investment is about 0.9% of it. [ 15 , 18 ]
- Shinsegae Property took a 100% stake in the vehicle RB Tentpole on Oct. 3 Korean time for indirect investment in the merger’s new shares. [ 10 , 18 ]
Still unclear
- The won equivalent of the $1bn investment is given as about 1.4 trillion won, about 1.34 trillion won and about 1.3596 trillion won. Outlets use different exchange-rate conversions for the same dollar figure.
- The target company is called Warner Bros. by most outlets, while Chosun Ilbo calls it Warner Bros. Discovery. Only one outlet uses the Warner Bros. Discovery name.
- The won equivalent of the $110 billion total acquisition price is given as about 154 trillion won by one outlet and about 147.44 trillion won by another. The two outlets use different exchange-rate conversions.
- How the investment will be funded, what stake Shinsegae receives and how the IP will generate revenue. Bloter says these points are key questions; no outlet reports the stake size or financing terms beyond the disclosure of funds to be raised through financial institutions.
- Details of the planned theme park in Hwaseong Star Bay City, including its opening date. Bloter reports a target of 2029; other outlets only refer to a planned theme park.
What local media are saying
Timeline, local time
- Newsis reports Shinsegae Group’s $1bn investment in the Warner Bros. acquisition. [ 1 ]
- Yonhap reports the investment and background on Paramount Skydance. [ 5 ]
- Bloter adds Shinsegae Property’s revenue and profit figures, the 2029 theme park target, and says the merger is expected to close on Oct. 6 US local time as “Skydance”. [ 6 ]
- Seoul Economic Daily reports the 10 billion dollar figure as about 1.3596 trillion won and describes the investment as indirect, through a Cayman Islands fund, RB Tentpole Co-Invest. [ 10 ]
- CBS NoCut News reports the total acquisition price of $110 billion and puts Shinsegae’s share at about 0.9%. [ 15 ]
- Inven reports Paramount completed the acquisition of Warner Bros. Discovery and Skydance officially launched. [ 16 ]
- Dong-A Ilbo reports Shinsegae Property acquired 100% of RB Tentpole on Oct. 3 Korean time, with funds to be raised through financial institutions. [ 18 ]