Lotte Cultureworks and MegaBox Central are pursuing a merger, and the stock price of Lotte Shopping, the largest shareholder of Lotte Cultureworks, is strong. Contentree JoongAng, the largest shareholder of MegaBox Central, has also shown an upward trend for two consecutive days.
Lotte Shopping stock was traded at 69,000 won at 9:15 a.m. on the 9th. The stock price rose by 3.76% (2,500 won) from the previous day. Lotte Shopping holds an 86.37% equity stake in Lotte Cultureworks. Contentree JoongAng, which holds a 95.98% equity stake in MegaBox Central, also saw its stock price rise by 3.83% (360 won) the previous day and 1.43% (140 won) on this day.
Lotte Cultureworks and MegaBox Central signed a memorandum of understanding (MOU) for the merger on the previous day and announced that they would strengthen the competitiveness of existing theaters and movie businesses and expand new businesses through the merger.
As the possibility of restructuring in the film industry increases, the stock price of CJ CGV, the number one market share holder in the industry, is showing weakness. CJ CGV stocks are trading at 4,950 won, down 1.98% (100 won) from the previous day.
However, there are also projections that the impact on CJ CGV will not be significant. Choi Yong-hyun, a researcher at KB Securities, noted, "Theaters are generally experiencing difficulties, so improving profitability takes precedence over securing market share," adding, "I don't believe the merger will increase market competition intensity." He also mentioned, "CJ CGV plans to continue pursuing expense efficiency policies aimed at improving domestic theater structure."