Eros International to merge with Hollywood studio STX Entertainment

Eros International, a global Indian entertainment company and STX Filmworks, Inc., a global next generation media company, announced that they had entered into a definitive stock-for-stock merger agreement to create the first publicly traded, independent content and distribution company with global reach and unique positions in the United States, India and China. The combined company will be called Eros STX Global Corporation.

Founded in 2014, STX Entertainment is a leading independent Hollywood studio focused on producing, marketing, owning and distributing film and television content for global audiences across traditional and digital media platforms. STX Entertainment has a deep global distribution network spanning 150+ countries.

“We are thrilled to join with STX Entertainment as this 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,” said Kishore Lulla, Executive Chairman and Chief Executive Officer of Eros International.

Robert Simonds, Executive Chairman and Chief Executive Officer of STX Entertainment stated, “The combination of our two companies creates the first truly independent media company that deeply integrates the expertise and creative cultures of Hollywood and Bollywood. Together we will have the relationships, management expertise and resources to create new content and grow rapidly in the largest and most attractive global markets.”

The combined company will be domiciled in Isle of Man, and headquartered in both Mumbai, Maharashtra, India and Burbank, California, USA.

Citigroup Global Markets Inc. is serving as financial adviser to Eros International and Gibson, Dunn & Crutcher LLP is serving as its legal adviser. PJT Partners is serving as financial adviser to STX Entertainment, and Kirkland & Ellis LLP is serving as its legal adviser.

Eros International Plc is a global Indian Entertainment company that acquires, co-produces and distributes Indian films across all available formats such as cinema, television and digital new media.

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