Toho acquires 25 percent stake in Fifth Season for $225 million

[FIFTH SEASON]

Japanese entertainment company Toho acquired a 25 percent stake in Fifth Season, a California-based production studio owned by CJ ENM, for $225 million.

CJ ENM said on Monday that the deal was made through Toho International, Toho’s U.S. subsidiary headquartered in Los Angeles. The Korean entertainment company remains Fifth Season’s largest shareholder with a 60 percent stake.

With the 25 percent stake, Toho became the second largest shareholder.

“We are thrilled to have Toho, the biggest entertainment company in Japan, as our partner at a time when Fifth Season is making significant strides as a major global studio,” said CJ ENM’s CEO Koo Chang-gun in a statement Monday.

The investment will be utilized to strengthen Fifth Season’s global distribution business and solidify its presence in the global market, according to the company.

Established in Tokyo in 1932, Toho possesses major intellectual properties (IP) such as Godzilla, Rodan, Mothra, King Ghidorah and Mechagodzilla.

CJ ENM and Fifth Season will work to distribute Toho’s content globally as well as participate in the planning and development of new Japanese content.

Toho President Hiro Matsuoka anticipates the deal would provide a new opportunity for the Japanese company as Fifth Season acts as a bridge to globally distribute its content.

“We believe that this collaboration will be a significant step toward challenging the global market, not only in the field of animation where Toho has excelled but also in the realm of live-action content,” he said.

“We are extremely grateful and excited to take on this challenge hand-in-hand with CJ ENM, which has been advancing into the global entertainment market from Asia, and Endeavor, a global sports and entertainment company. Crossing the ‘bridge’ between Japan and the world that will be built through this collaboration, we hope to see Japanese projects, intellectual properties and content expand further into the global market.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]