STX Entertainment
As Deadline exclusively reported back on October 5, STX Entertainment has allowed its application on the Hong Kong Stock exchange to lapse. Originally the motion picture television entertainment studio was seeking to raise a half billion.
However, market and political conditions in the Asian region impacted the Hang Seng Index to trade down 24% from its high and 17% on the year. Tech, media and telecommunications stocks were hammered and trading fell more than 50%. Goldman Sachs and J.P. Morgan were spearheading STXs Hong Kong IPO, and if the studio succeeded in being listed, it would have been the first U.S. entertainment company to appear on the Hong Kong exchange.
Even though STX had a lackluster summer with misses such as The Happytime Murders ($40M production cost, over $26M WW to date) and Mile 22 ($50M production cost, $64.7M WW to date), from what Deadline has learned tonight the company is ending its fiscal 2018 more than doubling its revenue across all lines of business, with positive cash flow of $160M-plus on the balance sheet. In lieu of the Hong Kong listing not happening, STX Chairman and CEO Robert Simonds told the studios 150-person staff in a memo that the company “met with and received strong institutional support from investors around the world, who approached us with two very compelling opportunities that we frankly find more attractive and value-creating than listing in Hong Kong. While we cant share details at this point, you should know we are actively engaged in one exciting process, which when done, will be transformative to our business.” Earlier in the month, we reported that STX was considering a listing on a U.S. stock exchange.
In the wake of Thursdays news, Simonds also praised STX staff for doubling revenues in 2018, making seven out of ten pics on the slate profitable, landing three scripted TV production commitments and one show on NatGeo worldwide and launching a slate of original VR short films.
Up next for STX is the Jennifer Lopez romantic comedy feature Second Act on Dec. 21 and the Kevin Hart-Bryan Cranston remake of French hit Intouchables, The Upside on Jan. 11. One particular film theyre banking on next year is the animated feature UglyDolls based on the popular toy line, opening May 10. Pic features the voices of Emma Roberts, Nick Jonas, Wanda Sykes, Janelle Monae, Pitbull and Kelly Clarkson. STXs highest grossing movie YTD was the Amy Schumer romantic comedy I Feel Pretty which made close to $95M WW.
Reuters broke the news tonight about STX officially allowing its IPO application on the Hong Kong exchange to lapse.
[contf]
[contfnew]
Deadline
[contfnewc]
[contfnewc]
