The Burbank-based global entertainment company announced the sale Dec. 7, just 18 months after merging with the 7-year-old mini-major media studio. According to a company release, Eros reached a deal with Jahm Najafi’s Phoenix-based private equity firm Najafi Cos., pending a 45-day period when Eros STX may solicit other offers although it must pay a $4.5 million breakup fee if it does so.
“This is a complicated, international public company carve-out transaction, and after countless hours over the past several months, we are thrilled to announce this new chapter with STX,” Najafi said in a statement.
The $173 million purchase price includes approximately $148 million in debt that STX is carrying from various obligations. The studio released 34 movies during its independent run, including the box office hits “Bad Moms” ($184 million in grosses) and “Hustlers” ($157 million). After initially using STX’s output to expand Hollywood content on its Indian streaming service Eros Now, Eros STX began shopping its library around in August 2020, just a few months after the merger, in the hopes of alleviating those debts.
