One of India's most prominent production houses, Eros International, yesterday announced that it had entered into a definitive stock-for-stock merger agreement with Hollywood's STX Entertainment, to create the first publicly traded, independent content and distribution company, with global reach and an unique position in the United States, India and China.
The new company will be called Eros STX Global Corporation and it will be publicly listed on the New York Stock Exchange.
The merger is expected to close in the second quarter of this year, and the firm will have headquarters in Burbank and Mumbai.
Eros International and STX Entertainment to Combine, Creating a Global Entertainment Content, Digital Media & OTT Powerhouse https://t.co/5oGfvRPDFq
— STX Entertainment (@STXEnt) April 17, 2020
Talking about the merger and their future plans, Eros International CEO, Krishna Lulla said “We are thrilled to join with STX Entertainment as it represents a landmark step in our company’s transformation. We are already at an inflection point as we move to a more consistent, stable and high growth revenue profile, with our digital over-the-top (OTT) platform. This merger will not only fuel our growth but will also diversify our underlying sources of revenue and subscribers, with a truly global play, building a powerhouse between East and West. We are well-positioned to create long-term value for our shareholders, partners, and employees.”
"Existing shareholders of Eros and STX will each hold about 42% of the merged entity each, while the remaining 15-odd percent will be with new shareholders," said Pradeep Dwivedi, the chief executive for Eros International Media.
The six-year-old, privately-held STX has released 34 movies, including Hustlers and Bad Moms, which have cumulatively grossed USD 1.5 billion, while Eros focuses primarily on the Indian and diaspora markets, by producing movies and distributing them through an OTT platform.
The new management team will be led by STX chief Robert Simonds as co-chairman and CEO, Kishore Lulla as executive co-chairman, Andrew Warren as CFO, Rishika Lulla Singh and Noah Fogelson as co-presidents, and Prem Parameswaran as head of corporate strategy.
The new company is also expected to release about 40 feature films, including seven sequels, and over 100 original shows in 2020.