ESGC - Eros has deal to sell STX Entertainment to Najafi; shares rise 4%

Eros STX Global (NYSE:ESGC) has a definitive deal to sell STX Entertainment, unwinding a troubled merger that marked its bid to become a Hollywood mini-major studio. ESGC stock is up 3.5% premarket. Private equity's The Najafi Companies have a definitive agreement to purchase the unit, through buying all the common stock of a parent entity of STX and a wholly owned subsidiary of Eros STX Global. Najafi is teaming up with the Forest Road Co. on the deal. "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," says Jahm Najafi. Eros STX stock slid in mid-November on news the company was in exclusive talks to sell STX Entertainment. Eros International had just acquired the unit in summer 2020.

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Eros has deal to sell STX Entertainment to Najafi; shares rise 4%