Shinsegae to invest $1b in Warner Bros. acquisition

Shinsegae Group announced Tuesday it will invest $1 billion in the acquisition of US media company Warner Bros.

Shinsegae Properties, the group's real estate development affiliate, will lead the investment alongside David Ellison, chairman of Paramount Skydance Group, and US fund manager RedBird Capital Partners.

The group said the investment is aimed at building new growth engines by leveraging popular content from Paramount and Warner Bros., two of Hollywood's most prominent studios. Shinsegae plans to use Paramount intellectual property — including the "Mission: Impossible" film franchise — along with Warner Bros. IP such as Harry Potter to transform itself into a platform combining retail and entertainment.

"This investment is a decision to expand Shinsegae Group's business portfolio into the global content sector and cultivate a new growth engine," the group said. "It means we intend to become a global retail and entertainment platform by generating synergies between our existing retail operations and entertainment businesses."

Shinsegae plans to install Paramount and Warner Bros. IP-based experiential facilities and themed spaces across its Starfield, Starfield Market and Starfield Village shopping complexes. The theme park planned within the Hwaseong Starbay City development, for instance, could gain a competitive edge by incorporating Warner Bros. content alongside Paramount's.

The group also sees potential for future collaboration in streaming, including with HBO Max and Paramount+. Linking those services to membership programs run by E-mart and other online and offline affiliates would expand customer benefits while significantly boosting customer retention, the group said. Shinsegae is also exploring plans to co-produce content with Paramount Skydance Group, which will include Warner Bros. under its umbrella.

"This investment goes beyond a simple equity stake — it will serve as a stepping stone for Shinsegae Group to diversify into a new business area that combines entertainment," the group said. "We will use this investment as an opportunity to establish ourselves as a platform company in the Asian content market."