STX Entertainment Is Sold To Najafi Companies For $173 Million By Eros

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STX Entertainment Is Sold To Najafi Companies For $173 Million By Eros
STX Entertainment Is Sold To Najafi Companies For $173 Million By Eros

The Najafi Companies, a US-based private investment firm with interests in media, technology, and sports, and Eros STX Global Corporation (ESGC) have signed a “definitive agreement” to sell Robert Simonds’ STX Entertainment for $173 million.

Subject to customary closing conditions, the transaction is expected to close by the end of January 2022. Eros has 45 days under the terms of the agreement to “go-shop” for better deals from other potential buyers.

Agreement

According to the agreement, if the agreement is terminated, Najafi will receive a $4.5 million termination fee and a $2 million deposit back. If the transaction cannot be completed due to certain conditions not being met, Najafi must pay a $4.5 million fee, less the deposit.

Following Simonds’ failed IPO attempt in Hong Kong in 2018, Eros and STX merged in 2020 to form Eros STX Global Corporation, which will allow Eros to stream STX’s Hollywood titles on its Eros Now streaming platform.

It was difficult to make an impact on stage. STX’s first big hit was the 2016 comedy Bad Moms, which grossed $184 million worldwide, including $113 million in North America. Hustlers grossed $157 million in its first year, with North America accounting for $105 million of that total.

Najafi Would Pay $173 Million To Acquire STX Entertainment
Najafi Would Pay $173 Million To Acquire STX Entertainment

Uglydolls, STX’s Highly Anticipated 2019 Release

Amy Schumer’s romantic comedy I Feel Pretty was distributed roughly equally in North America and the rest of the world. This company produced a large number of subpar products.

Uglydolls, STX’s highly anticipated 2019 release, was one of the studio’s notable flops of the year. Only $32 million was earned globally, with North America earning slightly more than $20 million.

Najafi Would Pay $173 Million To Acquire STX Entertainment

Furthermore, it would include the acquisition of all of the parent company’s common stock as well as its wholly-owned subsidiary, ESGC. The purchase price includes a $148 million debt repayment component. When STX Entertainment defaulted on its debt and Najafi needed working capital, Forest Road Company was the only option.

ESGC’s financial and legal advisors are Kirkland & Ellis LLP and Gibson, Dunn & Crutcher LLP, respectively. Both companies have their headquarters in New York. In legal matters, the Najafi Companies are represented by Ballard Spahr LLP.

After being founded in Phoenix in 2002, the Jahm Najafi Companies now has offices in Los Angeles and New York City.

Read more- The Guilty: Hollywood’s ‘Guilty’ Of Stealing Success From Foreign Film

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