Hony co-leads $700m round for US-based STX

The round includes more than $100 million in equity, with the rest comprising a debt refinancing, according to media reports linked from STX’s Twitter feed. STX, which has made the China market a key element of its strategy, will use the new capital to accelerate its release schedule, grow its TV business, and pursue overseas acquisitions including international film libraries and TV production companies.

Founded in 2011 by Hollywood producer Robert Simonds and Bill McGlashan, managing partner of TPG Growth, STX received a Series B investment from Hony, TPG, and DNS Venture partners in 2014. Tencent Holdings and Hong Kong-based telecom company PCCW invested in the company in 2016.

Films produced by STX include “All the Money in the World” and this year’s “The Upside,” and the studio has also participated in several Sino-US co-productions, including the Jackie Chan vehicle "The Foreigner." It targets films with budgets of $20-80 million that will release on at least 2,000 screens in the US and have the potential for wide global distribution. On the television side, it backs production budgets of up to $4.5 million per episode.

STX filed for an IPO in Hong Kong last year, reportedly seeking to raise up to $500 million for M&A in China to develop production and distribution capabilities and to acquire content. However, it called off the offering in October citing volatile market conditions.

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• Topics
• Greater China
• North America
• Media
• Expansion
• China
• USA
• Hony Capital
• TPG Capital