Eros International to merge with STX Entertainment | Media Investment | Business | News | Rapid TV News
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Claiming to be creating no less than a global entertainment content, digital media and OTT ‘powerhouse’, India-based global, entertainment company Eros International has entered into a definitive stock-for-stock merger agreement with STX Filmworks.

STX Eros 20April2020The two parties say that through their deal — what they call the first major entertainment and media company to be launched at this scale in Hollywood in more than twenty years — they have created the first publicly-traded, independent content and distribution company with global reach and unique positions in the US, India and China.

Founded in 2014, independent Hollywood studio STX Entertainment is focused on producing, marketing, owning and distributing film and TV content for global audiences across traditional and digital media platforms. To date, the company has released 34 films grossing over $1.5bn in global box office receipts, including such leading titles as Hustlers, Bad Moms and The Upside. STX Entertainment has a deep global distribution network spanning over 150 countries and in the calendar year 2019 generated revenue of over $400 million.

Eros International is owner of the Eros Now over-the top service and, in October 2019 after posting disappointing first quarter results, with an annual and quarterly decline in revenues and flat profits, the company revealed that its strategy would pivot towards focusing on the direct-to-consumer user base of its OTT business through increased marketing, technology advancements, windowing and digital content. It noted a platform partnership announcement with Microsoft as a key part of this strategy.

The combined company, to be called Eros STX Global Corporation, will remain a publicly traded enterprise and the owners say that it is uniquely positioned to benefit from the accelerating consumption of premium digital content in the world’s most important growth markets with a robust capital structure and experienced management team. The combined company, with $125 million of incremental equity, will have a pipeline of feature length films and episodic content.

“We are thrilled to join with STX Entertainment as this represents a landmark step in our company’s transformation,” said Kishore Lulla executive chairman and chief executive officer of Eros International. “We are already at an inflection point as we move to a more consistent, stable and high growth revenue profile with our digital OTT platform. This merger will not only fuel our growth, but will also diversify our underlying sources of revenue and subscribers…Collectively, we will have a unique capability to present our film and episodic libraries and pipeline of original content to a broad and growing global audience through multi-year output deals, strategic alliances and our market leading Eros Now streaming platform.” 

Robert Simonds, executive chairman and chief executive officer of STX Entertainment added: “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. Together we will have the relationships, management expertise and resources to create new content and grow rapidly in the largest and most attractive global markets. 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.”