STX Remaining From Independent Studio, Divorce Eros, Closes Najafi Deal – Deadline

except: There have been a lot of vitriolic rumors about STX Entertainment over the past four months, from a possible sale to Lionsgate to the presentation of Chapter 11. These rumors never materialized as crooks And bad mothers The studio can now breathe a sigh of relief, having completed its entire sale to The Najafi Companies, with Birch Grove LP and 777 Partners now also providing financing.

Forest Road was originally part of Etihad Najafi to take over the debt of STX, but is no longer part of the revived studio in the future.

All of this puts STX Entertainment in a position to remain independent, now completely separate from Eros International, which we’ve heard has its own financial baggage, further complicating matters for studio Burbank. All of this is beneficial to the environmental cover of the larger indie film, as STX won’t be a theatrical distributor to bite the dust in an industry still obsessed with broadcasting while the pandemic subsides.

Robert Symonds will serve as STX’s chairman, and current chairman Noah Vogelson will become the new CEO. Adam Vogelson will continue to serve as President of the Motion Picture Group, Andrew Warren will continue as Chief Financial Officer, and John Friedberg will continue to oversee the Motion Picture Group’s international divisions and acquisitions out of the company’s London office.

Friday’s deal puts STX in a position to continue developing, marketing and distributing content globally through multiple distribution channels including theatrical releases, international services, and streaming services as well as video-on-demand. STX is moving away from what was originally seen as 12 theatrical releases per year. The studio is now planning 15 films a year, five of which are for the big screen and the balance is divided between live broadcast, international theatrical distribution or live titles.

Like other studios, STX pivoted during the pandemic, with either hybrid theatrical releases or lucrative live streaming licensing. STX Greenland sent to PVOD in the US, skipped theatrical release (when movie theaters closed in New York and Los Angeles) and sold to HBO Max in this summer 2020 Gerard Butler movie. It licensed what was to be a theatrical release, my spy to amazon. I dealt with it Mauritanian, that won a Golden Globe award.

Recently, STX . was sold out Undertaker For Showtime and Queenbeans to Paramount+. STX expanded to television with the debut of the reality show FBoy Island on HBO Max.

“At a time when the 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,” said Jahm Najafi, founder and CEO of The Najafi Companies. As investors, we are long-term minded, believe in the power of storytelling and promoting a studio that suits storytellers. We have the utmost respect for this 100-plus-year-old ecosystem, and look forward to supporting this partnership and the ways in which modern entertainment studios will evolve into the future.”

Said Symonds: “The conclusion of this transaction is indicative of STX’s leadership position and hopeful future in the film and television industry. We are excited to work alongside this prestigious investment firm and are grateful for their continued support as we expand our library of star-driven content. We have strengthened our international reputation and outstanding ambitions. So far, we look forward to constantly proving ourselves with every project we push forward.”

Noah Fogelson added, “In a relatively short period of time, STX has helped create and distribute more than 70 films, many with stars and filmmakers who have done multiple projects with us. From The gift, bad moms And crooks to The Upside, Molly Game, Greenland and the next Operation FortuneDespite many headwinds, the studio carved out a niche in the industry. We are glad that the investor is as skilled as Jahm [Najafi] Najaf companies see the value of the platform today, as well as what can be achieved tomorrow.”

It was announced in December that Phoenix-based Najafi had acquired STX for $173 million, followed by a 45-day “go-shop” period during which STX could bid from other applicants; That’s when the Lionsgate show was considered. This deal, we hear, involved accommodating not only the library but the STX staff as well. Lionsgate offered that the price STX felt was too low to pass on to its board.

In a recent rearrangement of its financials, STX placed two films in bankruptcy under shell companies to protect the titles: Greenland 2 Chris Pine, Ben Foster The undertaker. While The contractor Sold to Showtime for $15 million+, the 30West PIC financier filed a complaint in US Bankruptcy Court in New Orleans seeking dismissal of the Chapter 11 case and alleges that STX failed to make $8.4 million in contract payments. The bankruptcy filing automatically prevented 30West from ending its troubled deal with STX. 30West was seeking to terminate her contract and get the film back.

Last week, Deadline reported that STX has made some cuts to lower-level executive levels as well as in marketing and distribution as it changes its model. Given today’s announcement, STX should be in a better position to reconcile all of the dilemmas mentioned above; We’ve even heard of hiring.

Najafi Enterprises is an entrepreneurial-led private investment firm with significant holdings in consumer brands, media, e-commerce, sports and technology.