PCCW, Ten­cent in­vest in STX En­ter­tain­ment

China Daily (USA) - - BUSINESS - By BLOOMBERG

PCCW Ltd and Ten­cent Hold­ings Ltd are lead­ing an in­vest­ment round in STX En­ter­tain­ment, giv­ing the dis­trib­u­tor of the fea­ture films Bad Moms and The Gift funds to build its TV di­vi­sion, ex­pand in­ter­na­tion­ally and ac­quire dig­i­tal me­dia star­tups.

The deal val­ues STX, founded by pro­ducer Robert Si­monds and pri­vate-eq­uity in­vestor Bill McGlashan, at al­most $1.5 bil­lion, ac­cord­ing to a per­son with knowl­edge of the mat­ter. The com­pa­nies, which an­nounced the fund­ing in a state­ment on Thurs­day, de­clined to com­ment on the fi­nan­cial de­tails. Robert Si­monds,

Though STX be­gan by mak­ing movies, Si­monds wants to build a more di­verse me­dia en­ter­prise that makes TV, vir­tual-re­al­ity con­tent, short-form video and mo­bile ap­pli­ca­tions. In­clud­ing an ex­panded credit fa­cil­ity, STX now has more than $700 mil­lion to ac­cel­er­ate its spend­ing on pro­duc­tion and ac­qui­si­tions, said the per­son, who asked not to be iden­ti­fied be­cause the terms aren’t pub­lic.

“Our in­ten­tion was never to just make a bunch of movies. We built up the movie di­vi­sion to at­tract stars and sto­ry­tellers,” Si­monds said.

Si­monds plans to of­fer ac­tors and film­mak­ers cre­ative op­por­tu­ni­ties rang­ing from per­sonal apps to vir­tual-re­al­ity ex­pe­ri­ences. The com­pany will seek ac­qui­si­tions in the com­ing months to help re­al­ize those am­bi­tions, he said. STX plans to re­lease a dozen mo­tion pic­tures a year and has se­cured deals for 22 tele­vi­sion shows, ac­cord­ing to the state­ment.

“We want to go out there and make some in­or­ganic pur­chases,” Si­monds said.

The tie-up with PCCW, a telecom­mu­ni­ca­tions com­pany con­trolled by bil­lion­aire Richard Li, will give STX ac­cess to au­di­ences in Hong Kong, South­east Asia and In­dia. The com­pany also has a con­tent part­ner­ship with Ten­cent, Asia’s big­gest in­ter­net com­pany.

Our in­ten­tion was never to just make a bunch of movies. We built up the movie di­vi­sion to at­tract stars and sto­ry­tellers.” amovie pro­ducer and founder of STX

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