Following the completion of Paramount's acquisition of DreamWorks, Korean conglomerate CJCorporation has sold its 4.95% stake in the studio to Paramount for $35.8m.
CJ Corp gave public noticeof the Jan 31 sale of approximately 2.31 million shares yesterday (Feb 2).
CJ Entertainment became amajor founding investor in DreamWorks in 1995 with equity and a deal todistribute DreamWorks films in Korea and selected Asian territories. They had since soldoff most of their stocks, but retained the distribution rights.
When asked about the futureof this distribution deal, CJ Entertainment stated: "Our relationship [with Paramount and DreamWorks] is under discussion so it is stillearly to make any additional comments."
CJ Entertainment hadannounced an agreement in Dec 2005 to distribute blockbuster actioner Typhoon in the US through DreamWorks. Although initially said not tobe affected by the Paramount takeover, the deal is also believed to be underdiscussion at this point.
With CJ Entertainment and CJCGV targeting the US market for films with sales, distribution, and the recent announcementof exhibition plans, the sell-out may signal CJ's walking of its own line inthe US.