Shinsegae bets $1 billion on Warner Bros. Discovery

Harry Potter and Ethan Hunt may turn up at a Starfield mall, as Shinsegae Group puts $1 billion into Paramount Skydance's takeover of Warner Bros. Discovery (WBD).

The retail group said Tuesday that its property development affiliate, Shinsegae Property, will invest $1 billion in the acquisition alongside David Ellison, chairman and CEO of Paramount Skydance, and U.S. investment firm RedBird Capital Partners.

Shinsegae said it aims to use intellectual property (IP) held by the two companies to build a platform that combines retail and culture, and to "become a content hub for Asia."

The group pointed to the Paramount-themed park it is developing at Star Bay City in Hwaseong, Gyeonggi. The WBD acquisition could give the park access to Harry Potter and Game of Thrones IP alongside Paramount's Mission: Impossible, Star Trek and Top Gun franchises.

Shinsegae also plans to install attractions and themed spaces based on the studios' IP at its Starfield, Starfield Market and Starfield Village shopping complexes.

The group said it expects to cooperate with the streaming services HBO Max and Paramount+. Linking them to membership programs run by Emart and other online and offline affiliates would increase customer benefits and retention, it said.

Over the longer term, Shinsegae is considering producing content with Paramount Skydance, including co-producing or partnering on Korean originals. HBO Max and Paramount+ have more than 200 million subscribers combined, according to Shinsegae.

"This investment goes beyond a simple equity investment and will be a stepping stone for Shinsegae Group to diversify into a new business area that incorporates entertainment," the group said in a statement. "Through this investment, we will create an opportunity for Shinsegae Group to become a platform company in the Asian content market."

Update, Oct. 6: Details of the investment were added.

BY KIM MIN-YOUNG [[email protected]]