Lionsgate explores last-minute acquisition of ailing STX entertainment company

Lionsgate is looking to acquire some or all of STX Entertainment after the “Hustlers” studio was in the process of selling it to Najafi Company for $173 million, a knowledgeable individual told TheWrap.

Representatives for both Lionsgate and STX declined to comment.

The purchase agreement from Najafi includes a 45-day “go-to-purchase window” that allows Eros to solicit other proposals in 45 days, and the $173 million also includes $148 million in debt. STX will pay $4.5 million in termination fees if the deal with Najafi fails.

Robert Simonds’ STX Entertainment, the company behind hits like “Hustlers,” “Greenland,” and “Bad Moms,” merged with Eros into ErosSTX in 2020, but the company has been hit hard by the pandemic. and struggled to find other successes at the box office, and the studio tried to sell its film library before selling Najafi to pay off debt. STX is also nearing its repayment deadline in February to repay its creditors.

Lionsgate has been suggested for years as an M&A target for many years, and in November it announced that it was exploring the sale of premium cable sockets and the Starz streaming service.

Diversity First time reporting the news.

More to come…

https://www.thewrap.com/lionsgate-explores-acquiring-stx-entertainment/ Lionsgate explores last-minute acquisition of ailing STX entertainment company

Curtis Crabtree

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