Lionsgate is looking to absorb part of, or all of STX Entertainment, Deadline has learned from sources.
STX was recently rescued back in early December from a draconian merger with Eros by Jahm Najafi’s Phoenix-based The Najafi Companies for $173M.
As Deadline first reported, that move by Najafi was an interim step on the way to a later, possibly bigger, transaction. A key element of the agreement is a “go-shop period,” a 45-day span during which the board of directors of ErosSTX, with the assistance of its financial advisor, Lazard, can solicit alternative proposals from third parties. Reportedly there are other suitors in the mix for the STX assets which include Jennifer Lopez’s highest grossing live-action domestic movie, Hustlers ($105M) and the Bad Moms comedy franchise.
Separately, a Lionsgate and STX spokesperson declined to comment.
Variety first had the news about Lionsgate’s serious kicking of the tires of STX.