Lionsgate will explore the possibility of acquiring STX Entertainment or part thereof after the purchase. “Hustlers”Studio was in the midst a planned sale of its assets to Najafi Companies, an individual who has knowledge said.
Reps from both Lionsgate & STX declined comment.
A 45-day waiting period was included in the purchase agreement with Najafi “go-shop period”Eros could solicit other proposals for 45-days. In addition to $173 million, Eros also had to absorb $148 millions in debt. STX would pay a $4.5 million termination fee if the deal with Najafi doesn’t go through. Before the Najafi sale the studio tried to sell its films library in order to repay debt. The deadline is fast approaching for STX to pay its creditors.
Robert Simonds’ STX Entertainment, which is behind hits such as “Greenland” “Bad Moms,”ErosSTX was merged into Eros in 2020 as ErosSTX, following a studio-record $319 million boxoffice cume. It was fuelled by 2019 hits like “Hustlers” “The Upside.”
However, the company also released a number of flops in 2019, including “UglyDolls”($20 million domestic) and was hard hit by the pandemic. There were delays in production and a lackluster response from the audience to the films. ErosSTX made just $8.8million from four films in 2021. $6 million came from the overseas sales of Guantanamo Bay’s true story. “The Mauritanian.”
Lionsgate has been suggested for years as an M&A target for years, and in November they announced they were exploring the sale of its premium cable outlet and streaming service Starz.
VarietyThe news was first reported.
More to come…