April 25, 2024

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[THE INVESTOR] Analysts had mixed reviews about the merger of CJ O’Shopping and CJ E&M on Jan. 18.

KTB Investment and Securities analyst Lee Nam-jun said it will create synergies as the home shopping company’s cashable assets will be handily used in the content firm’s expansion in overseas contents and new businesses including a theme park. 

As the appraisal rights for shareholders were set at 93,153 won (US$87.08) per share, the stock price has secured a minimum price, explained the analyst. 

Rather than reflecting the expectations, though, investors should confirm the results first, cautioned Lee, maintaining a “buy” recommendation and 110,000 won target price. 

NH Investment and Securities, on the other hand, was more circumspect, saying that the merger could lead to a new business model but only in a long-term perspective. 

It is positive in that the media sector with a big growth potential overseas could seek an advance backed by the capacity to generate cash, but the convergence of media and commerce is still an unfamiliar concept and it will take a long time before this could show outcomes, said analyst An Jae-min.

By Hwang You-mee (glamazon@heraldcorp.com)