Shinsegae backs Paramount’s Warner Bros. takeover with $1b

Shinsegae Group is making a $1 billion bet on Hollywood, aiming to bring blockbuster franchises into its shopping malls, planned theme park and membership programs, as it seeks growth beyond retail.

The Korean conglomerate said Tuesday its real estate arm, Shinsegae Property, will invest alongside Paramount Skydance Chairman and CEO David Ellison and US investment firm RedBird Capital Partners in Paramount Skydance’s acquisition of Warner Bros. Discovery.

Expected to close Tuesday, the deal would unite Paramount’s "Mission: Impossible," "Top Gun" and "Star Trek" with Warner Bros.’ "Harry Potter" and "Game of Thrones," creating a broader portfolio of films, television shows and streaming services.

For Shinsegae, the investment offers a route to potential partnerships spanning themed attractions, streaming subscriptions and content production. The group aims to use its retail network to build an entertainment business serving audiences across Asia.

The strategy could extend to the theme park planned within Shinsegae’s Starbay City development in Hwaseong, Gyeonggi Province. The addition of Warner Bros. franchises to Paramount’s portfolio will give Shinsegae access to a broader range of globally recognized characters and stories.

Shinsegae added it will look to incorporate the various intellectual properties into its network of large and midsized shopping complexes such as Starfield, Starfield Market and Starfield Village, envisioning experience-based facilities and themed spaces built around the franchises to turn shopping destinations into places where customers can interact with their favorite content.

On top of that, Shinsegae expects to explore partnerships involving HBO Max and Paramount+, potentially linking the services with memberships operated by E-mart and other online and offline affiliates.

Shinsegae noted that it is considering working with the combined Paramount Skydance and Warner Bros. business to develop and present content capable of attracting audiences across Asia. If partnerships extend to co-producing or licensing Korean original content for global streaming platforms, the group said it could seek to leverage the continued international popularity of Korean entertainment.

“This investment will serve as a stepping-stone for Shinsegae Group to diversify into new business areas that combine entertainment, going beyond a simple equity investment,” the group said.

“Through this investment, we aim to create an opportunity for Shinsegae Group to become a platform company in the Asian content market.”