Eros International to Merge with STX Entertainment in All-Stock Deal

Eros International and STX Entertainment are merging in an all-stock deal to create a publicly traded content/distribution company with positions in the US, India, and China. The combined company, Eros STX Global, will have $125M in incremental equity and superior liquidity, with $264M in net debt, $195M in cash, and $120M in available revolving credit. The deal aims to leverage the strengths of both companies to become a powerhouse in the industry.

In a significant move in the entertainment industry, Eros International and STX Entertainment have announced a merger, creating a publicly traded content and distribution company named Eros STX Global. The deal, which will be completed through an all-stock transaction, aims to leverage the strengths of both companies to become a formidable player in the global market.

The new company, Eros STX Global, will have a combined market capitalization of approximately $125 million in incremental equity. It will also benefit from superior liquidity, with $264 million in net debt, $195 million in cash, and $120 million in available revolving credit. This financial structure positions the company well to capitalize on growth opportunities in the US, India, and China.

The merger comes at a time when both companies are undergoing periods of transformation and growth. Eros International, a leading film and television production company in India, has been expanding its footprint in the global market. STX Entertainment, a Los Angeles-based studio, has been focusing on international expansion and co-production deals, notably with Chinese film production companies [1].

The combined entity will benefit from the complementary strengths of both companies. Eros International's strong presence in the Indian market and STX Entertainment's robust international connections and production capabilities will create a powerful synergy. The new company will be led by experienced executives, including Andrew Warren, who will take on the role of EVP and Interim CFO, bringing significant experience from his previous roles at Discovery Communications, NBCUniversal Television Group, and STX Entertainment [2].

The merger is expected to enhance the combined company's ability to produce and distribute high-quality content across multiple regions. By pooling resources and leveraging their respective strengths, Eros STX Global aims to become a major player in the global entertainment industry.

References:
[1] https://www.avid.wiki/STX_Entertainment
[2] https://www.stocktitan.net/news/PARA/paramount-announces-cfo-d3y8pfhbaxyx.html