Has STX entertainment finally decided to go public for raising more fund? Officially it is not final yet.
However, Producer Robert Simonds is now hinting at an Initial Public Offering in Hong Kong aiming to build a bridge between China and the US, the biggest movie markets. A Hollywood startup studio, Bob’ STX Entertainment is now working to expand its studio at a more aggressive rate, thus planning to open a new office in the city and Hong Kong is selected as the favourable location for handling all stock market, reported South China Morning Post.
According to a report, Robert Simonds has not given any information regarding the possible size of the IPO and the exact timeline. Robert Simonds said,” Our currently going business is self-sustaining and the last round of financing provided us with all the capital we needed to expand all our businesses besides movies.” He added,” Currently we are fully funded but to expand more and more at an aggressive rate we need to raise more fund.”
STX Entertainment was founded in 2014 by a joint effort of Robert Simonds and Bill McGlashan. Its theatrical releases included ‘Bad Moms’, ‘A bad Moms Christmas’, ‘Den of thieves’, ‘The Gift’ with the upcoming releases of ‘I feel Pretty’, ‘Adrift’, ‘Mile 22’ and much more in 2018.
John Zhao, CEO of Hony Capital, said the market value of STX Entertainment is continuously growing and it has almost reached 6-7 times since two years ago when Hony Capital had invested in it.
Tencent and Hong Kong telecoms giant PCCW are the other Chinese investors of STX Entertainment which helped Bob Simonds in the last round of fundraising by purchasing equity stakes in STX’s Los Angeles-based film studio and thus helped in the production of 30 major studio titles which further generating more than $6 billion.
“The STX studio spent in between $600 million to $1 billion this year on its movie business and planning to spend the same or more than this in the coming year. It should make up almost half of the budget and for the rest of the budget we are looking towards our TV shows, and streaming and virtual reality entertainment sector.” Bob Simonds told to one staffer.
A number of deals are going on and Robert Simonds is looking forward and said, “he expects that Chinese government will raise its quota for the imported films at the end of this year”. It will help Simonds’ STX to indulge and expand its studio business more and more in China film industry.
Where the number of studios are looking to invest in the China film industry, Bob Simonds wants to make a bridge in between the two biggest film industry.
Simmonds said,” We are continuously looking for partners more smart, more creative and more focused than us so that they can make sure that we together make a right decision.”
“Today we are in good shape”, Simonds told Bloomberg with our number of hits and a series of good and long-time partnership.