ESGC - Eros STX in exclusive talks to sell off STX studio after troubled integration; stock falls 38%

Mini-major film studio Eros STX Global (NYSE:ESGC) has slid 37.6% today alongside reports that its subsidiary STX Entertainment is in exclusive talks to be sold off to another company. Bollywood entertainment leader Eros International made a splash in summer 2020 by acquiring STX Entertainment, with ambition to becoming the latest mini-major film power. But the company has struggled with the Mumbai-California integration, particularly in the environment of the COVID-19 pandemic and its disruption of film and television production. Shares of its stock have tumbled more than 73% since the deal's completion, and slipping below the dollar-per-share mark this summer has put it at risk for NYSE delisting: Eros STX also says that it's secured an extension of its credit agreement to stretch maturity date and due date for financial statements to Dec. 3; that deadline may be further extended depending on the STX deal talks.

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Eros STX in exclusive talks to sell off STX studio after troubled integration; stock falls 38%