Daou Kiwoom-led consortium, backed by CJ and Shinsegae, emerges as preferred bidder with reported W500b offer to revive debt-laden newspaper
A consortium led by Daou Kiwoom Group, alongside CJ Group and Shinsegae, has emerged as the preferred bidder for debt-laden newspaper publisher JoongAng Ilbo, bringing two branches of the Samsung founding family into a bid to revive the struggling media company.
Daou Kiwoom Group, whose flagship financial affiliate is Kiwoom Securities, is expected to take a 50 percent stake in the consortium, with entertainment conglomerate CJ Group and retail giant Shinsegae splitting the remainder, according to reports on Tuesday.
CJ and Shinsegae's involvement is particularly significant given their family ties to JoongAng Ilbo. CJ Group Chair Lee Jae-hyun and Shinsegae Chair Chung Yu-kyung are both grandchildren of the late Samsung founder Lee Byung-chul, who established the newspaper in 1965.
Their participation signals support from within the broader Samsung founding family for the newspaper's financial turnaround. CJ is already a shareholder in JoongAng Ilbo, holding a 9.24 percent stake through its affiliate CJ OliveNetworks.
"We plan to create cooperation between the two companies by leveraging our premium cultural platforms and lifestyle content while respecting JoongAng Ilbo’s unique identity and expertise," Shinsegae said in a statement Tuesday, confirming its participation.
The consortium reportedly offered around 500 billion won ($375 million) for the newspaper, beating rival bidders.
The acquisition will be carried out through a third-party allotment of new shares, meaning the proceeds will flow directly to JoongAng Ilbo rather than its existing shareholders. The funds are expected to strengthen the newspaper's finances.
JoongAng Ilbo has been seeking an investor to secure fresh capital amid mounting financial difficulties. The newspaper received approval for a creditor-led debt restructuring program in July.
If completed, the acquisition could generate synergies with the participating groups' existing media and content businesses.
Daou Kiwoom operates KidariStudio, a webtoon and web novel platform, while CJ Group counts entertainment and media company CJ ENM among its key affiliates. Adding JoongAng Ilbo to their portfolios could help the groups expand their reach across digital content, broadcasting and entertainment.
Shinsegae is reportedly joining the consortium as a financial investor rather than seeking management control and is expected to become JoongAng Ilbo's third-largest shareholder.
The consortium beat five rival bidders, including Orion, Global Sae-A, OK Holdings, eBroadcasting and Geumbo Development.
Orion faced opposition from activist investors Flashlight Capital Partners and Teton Capital, which questioned the acquisition's strategic rationale and urged the company to withdraw. Their stakes in Orion remain undisclosed, and the company did not publicly respond to their letters.
silverstar@heraldcorp.com
