STX Entertainment

Founding and early years

In 2012, Simonds and McGlashan, the head of TPG Growth, were discussing the profitability of producing films with a star attached and a medium budget (in the $20–60 million range), a method that had gone out of style with Hollywood studios. The conversation led to the launch of STX Entertainment in 2014, with a mission to finance, develop, produce, market and self-distribute 8 to 10 medium budget star-driven films worldwide per year.

First deal agreement

In March 2015, STX announced a deal with Chinese film production company Huayi Bros. to co-finance at least 18 films to be produced over a three-year period beginning in 2016, which would increase STX's slate to 12 to 15 films annually through 2018.

Distribution deals and later ventures

Rather than pursuing the traditional distribution process, STX has direct distribution agreements with North American theater chains AMC, Regal, Cinemark ,Marcus Theatres and Carmike Cinemas. In January 2015, STX signed a multiyear television output agreement to release its films exclusively to Showtime Networks during the premium television window, beginning in 2015 and covering the studio’s theatrical releases through 2019. In April 2015, STX entered into a multiyear partnership with Universal Studios Home Entertainment, with Universal handling marketing, sales and distribution services for Blu-ray, DVD and VOD platforms of STX’s theatrical titles in North America.

STX is backed by venture capital firm TPG, Chinese private equity firm Hony Capital, and private equity including Gigi Pritzker and Beau Wrigley. The studio has announced plans to invest over $1 billion per year through 2018 in making, marketing and distributing films. STX closed a further round of financing in August 2016 that valued the company at close to $1.5 billion. Additional major strategic investments were made from companies including Chinese technology giant Tencent and Hong Kong-based telecommunications firm PCCW.

Later in August 2016, STX acquired VR content producer Surreal to begin powering some of their own efforts in the virtual reality space. Terms of the deal were not disclosed.

In January 2017, it was announced STX Entertainment signed a three-year marketing and distribution agreement with EuropaCorp's American division, under the deal STX will release Their Finest, The Circle and Valerian and the City of a Thousand Planets.

Film production

In January 2015, STX announced its first slate of films: The Gift, a thriller starring Jason Bateman, Rebecca Hall and Joel Edgerton, and written and directed by Edgerton; Secret in Their Eyes, a remake of the 2009 Argentine film, starring Chiwetel Ejiofor, Nicole Kidman and Julia Roberts, and written and directed by Billy Ray; The Boy, a psychological horror thriller directed by William Brent Bell and starring Lauren Cohan; The Free State of Jones, a Civil War drama starring Matthew McConaughey and written and directed by Gary Ross; and Russ and Roger Go Beyond, starring Will Ferrell and based on the true story of the collaboration between Russ Meyer and Roger Ebert. STX also acquired worldwide rights to the action film Hardcore Henry for $10 million after its premiere at the Toronto International Film Festival, making it the studio's first acquisition. In April 2016, it was announced that Barbra Streisand and Barry Levinson will be producing a film version of the Broadway musical Gypsy for STX, with a screenplay by Richard LaGravenese. At the 2016 CinemaCon in Las Vegas, STX announced it would be working with Sylvester Stallone on a new project. In May 2016, it was announced that STX would develop the teen comedy Alex Strangelove, to be directed by Craig Johnson from his own script, and to be produced by Ben Stiller's Red Hour Films. Additionally, STX announced it would have an animation and family division and it will be kicked off by the Uglydoll movie which is based on the David Horvath line of plush characters.

Television production

STX's first television project was the 13-episode series State of Affairs, which was developed by STX and sold to NBC. The drama/thriller stars Katherine Heigl and Alfre Woodard. It premiered on NBC on November 17, 2014. STX is also producing the NBC pilot Problem Child, based on the 1990 film of the same name.

Management

Robert Simonds serves as chairman and CEO, former Viacom Entertainment COO Tom McGrath serves as COO, Sophie Watts serves as President, and Noah Fogelson is General Counsel and Executive Vice President of Corporate Strategy of the parent company. In September 2014, former Universal Pictures chairman Adam Fogelson was hired as STX’s Chairman of the Motion Picture Group division. Also that month, Oren Aviv, former President of Marketing at 20th Century Fox and Disney was hired as the President and Chief Content Officer of the Motion Picture Group, working with Fogelson to develop, produce and market STX's films. In April 2016, David Kosse announced he would be leaving as CEO of British production company Film4 to join STX as president of its new STX International division. Also that month, former Relativity Media president Michael Joe joined STX as COO of its Motion Picture Group, and Punk'd creator Jason Goldberg signed on as head of STX Non-Scripted and Alternative Programming, which will focus on projects for the United States, China and India.

STX's Board of Directors includes Frank Biondi, the former president and CEO of Viacom and former chairman and CEO of Universal Studios; Tony Vinciquerra, former chairman and CEO of Fox Networks Group; film producer Gigi Pritzker, founder of Odd Lot Entertainment; David Bonderman, founding partner of TPG; and John Zhao, CEO of Hony Capital.

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