STX was sold to a group of investors led by companies from Najaf –

STX Entertainment, a film and television studio founded by Robert Simmonds that once hoped to compete with most of Hollywood by focusing on mid-budget projects, has found another buyer in a consortium of investors led by Najafi Companies. Investment firms AS Birch Grove LP and 777 Partners have joined in financing the deal, which was disclosed on Friday.

The STX leadership team remains in place as Simmonds takes over as president, Noah Fogelson takes over as CEO and Adam Fogelson continues to lead the film crew. “Closing this deal signifies STX’s leadership position and a promising future in the film and television industry,” said Simmonds. “We are pleased to work with this highly respected investment firm and appreciate their continued support as we expand our library of star-based content.

Phoenix-based Najaf Group acquired STX’s assets after offering the company $173 million in December, although after announcing the deal, Lionsgate was also looking into STX’s offer in a deal that did not materialize. The Najaf deal was valued at about $157 million, with Eros retaining 15%, according to a known source. the hollywood reporter.

STX’s next plan is to produce four to five theatrical releases a year in the $20 million to $60 million range, the source said, in addition to compiling a premium video release and selling the projects directly to streaming companies. (The future of Michael Mann ferrari An $80 million budget biopic is said to be an exception for the studio.) Continue GreenlandThe fact that he was sent to bankruptcy proceedings amid uncertainties in sales is also likely to be on the study’s list.

“At a time when demand for global content has never been greater, we are very excited about this rare opportunity to acquire STX Entertainment, one of the only remaining independent studios. As investors, we are for the long term and we believe in the power of storytelling and building a storytelling friendly studio,” said Jahm Najafi, Founder and CEO of The Najafi Companies.

Additional guidance released Friday includes Andrew Warren, who remains the chief financial officer, and John Friedberg, a London-based director, as international director of films and acquisitions. STX, which currently employs about 85 people in Burbank and London, has just completed a round of layoffs at theaters and unions.

The sale marks the end of an exceptional season that has been turbulent for several years. STX, founded in Burbank in 2014, started its theatrical roster jones free state (which generated $25 million worldwide), The secret in your eyes. (US$34 million), ᲡGift ($58 million) and a Showtime departure deal was signed, valid through 2019.

In January 2015, Adam Fogelson, Adam Fogelson, who founded the former Universal, described the company as “the first major studio to start in two decades”. Within months, the company, which had early backers including private equity firm TPG Growth and China-based Hony Capital, signed a multi-year financing deal with Chinese manufacturer Huayi Brothers, assembled its own executive team. and revealed plans to release 12.15 films a year. and spend between $350 million and $400 million annually on media purchases to support it. In 2017, STX invested in Liberty Global media mogul John Malone.

STX created the Family Division, a London-based international division led by David Cose, and Jason Goldberg’s unscripted television station (which went on to produce Nat Geo). boom valley) And also ventured into virtual reality projects (similar to Robert Rodríguez). ᲚImitation). The company scored a hit with the comedy ensemble. bad mothers ($183 million) in the summer of 2016 and then quickly turned on the sequel, 2017 bad mothers christmas (US$ 130 million). The studio allied with Jennifer Lope in 2018 second act (US$72 million) and then Hastler ($157 million) a year later. He also supported actor Chadwick Bosman. 21 bridge ($49 million) and Guy Ritchie gentlemen ($115 million) in 2019.

STX also acquired the rights to the UglyDolls brand in 2015, the company saying the feature film would help create a franchise that could play on TV and in games, involving Hasbro and Hulu as partners. The resulting animated film, starring the ensemble star, grossed just $32 million in 2019.

As of April 2020, STX has released 34 movies while working at Indie Studios. The company, which had hoped to raise funds by listing on the Hong Kong Stock Exchange, implemented these plans in 2018 due to unfavorable business conditions. Instead, STX agreed to merge shares with Eros International, a major film production company based in India, in hopes that the companies would merge and become a streaming powerhouse with 26.2 million paid subscribers. from Eros Now. This bet was not justified.

STX seems to have had success with premium video on demand with actioner Greenland In 2020, it also made $52 million overseas during a pandemic, despite movie theaters closing. In August 2021, STX began public acquisitions with its film library to pay off more than $150 million in debt.

“In a relatively short period of time, STX has helped create and release over 70 films, with many stars and filmmakers working on many projects with us,” Noah Fogelson said Friday, adding, “We are delighted. That an expert time investor [Najafi] And Najafi companies see the value of the platform today and also what will be available tomorrow.