CJ Group to buy OnMedia for 434 bln won

(ATTN: ADDS more details in 3rd para; UPDATES share prices in last para)
SEOUL, Dec. 24 (Yonhap) -- CJ Group, a major South Korean conglomerate, said
Thursday it will buy a domestic cable-television operator for 435 billion won
(US$369 million) in a deal that will help solidify its presence in the media
content market.
The group said affiliate CJ O Shopping Co. will buy a 55.17 percent stake in
OnMedia from Orion Corp. and three other major shareholders. It has been in
negotiations with Orion to buy the stake. Orion owns 37 percent of OnMedia.
OnMedia operates 10 cable channels ranging from movies and cartoons and is the
country's No. 2 programming provider after CJ Media Co. with 560,000 viewers. CJ
Group also operates cable operator CJ HelloVision Co.
CJ O Shopping, the country's second-largest cable-television shopping channel
operator, would have 3.2 million in customer base after the deal, helping to
boost its presence in the local home shopping market.
"The deal may boost OnMedia's corporate value on lowered costs and ample content
in its cable programming services," said Yang Jong-in, an analyst at Korea
Investment & Securities Co.
Shares of OnMedia surged by the daily limit of 15 percent to 4,495 won on the
Seoul bourse as of 1:40 p.m., while shares of CJ O Shopping were trading at
76,700 won, up 1.19 percent.
sam@yna.co.kr
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