STX Entertainment, a US-based film and television production studio that counts several corporate backers among its investors, has agreed to merge with India-based, US-listed film producer and distributor Eros International.
The merged company will be known as Eros STX Global Corporation and will take the New York Stock Exchange listing currently held by Eros, which has a market capitalisation of about $330m at time of publication.
The new company will be valued at more than $1bn including debt, people familiar with the matter told Bloomberg. Existing STX investors including mass media group Liberty Global, private equity group TPG and private equity firm Hony Capital are providing $125m in incremental equity funding.
Founded in 2014, STX has released 34 feature films including Bad Moms, Molly’s Game, The Gentlemen and Hustlers, in addition to television shows, and is also exploring digital content in new mediums such as virtual reality.
Eros was founded in 1977 and produces and distributes films as well as releasing their soundtracks on its label, Eros Music. It also operates an online streaming service, Eros Now, with more than 26 million paying subscribers.
Robert Simonds, chairman and CEO of STX Entertainment, said: “The combination of our two companies creates the first truly independent media company that deeply integrates the expertise and creative cultures of Hollywood and Bollywood.
“On day one, we will have the ability to tap into our significant combined libraries, and draw upon our deep relationships with A-list actors, directors and producers across the globe to create even more compelling content for millions of consumers.”
Hony Capital and TPG subsidiary TPG Growth led STX’s last round, in March 2019, when it raised $700m in debt and equity financing. A press release announcing the merger indicated part of that round involved a $350m credit facility led by JP Morgan.
STX had previously received an undisclosed amount from internet group Tencent, telecommunications and media group PCCW, TPG Growth, Hony Capital, William Wrigley Jr, Dominic Ng and business interests of Gigi Pritzker, Michael Pucker and their immediate family, at a $1.5bn valuation in 2016.
Hony Capital and TPG supplied STX’s initial funding in 2014 and its shareholders reportedly also include media and entertainment producer Madison Wells Media.
