STX Entertainment is established as a force to be evaluate with. The company as of now has officially sealed a deal Brothers Media Corporation which is China’s largest privately held film firm. In the upcoming three years agreement, the company has decided to product 12-15 projects per year. Deadline.com which is the online magazine which was founded by Nikki Finke in the year 2006. The company is owned by Jay Penske in the year 2009 and is now a brand of Penske Media Corporation. It is the main focus of the entertainment industry.
Deadline.com understands the deal is to be methodic as a revolving line of credit estimated at upwards of $1 billion for films which are to be co-produced and distributed with Huayi Brothers.
There exists many number of titles which are not yet announced but have been approved. Although the relationship between the parties begins immediately, STX will not see its slate ramp up until next year.
It is also understood that this is a pure investment and the main aim here is to broaden the Huayi Brothers work that should reach beyond China. Also, Deadline said that, to is to see that Huayi Brothers want to see themselves participates in a global state. According to Wanda/AMC, they say that China is not eligible to focus for partnership i.e. it means that it is not necessary to make the Chinese movies.
Huayi, it is understood, will automatically invest in the titles that STX triggers. The planned model of $20M-$60M budgets will stick; and output deals are being established for international distribution.
Robert Simonds in Deadline also said that ““In anticipation of this significant expansion, we have been pursuing acquisitions of multiple, premium companies in spaces that include Virtual Reality, Short-Form Content creation, and the engineering of artist-driven Apps.”
However, there is clearly a more strategic play at work. According to the relationship tree, the key to the deal is with the former chairman of Bear Stearns Asia who is the former chairman of Bear Stearns Asia as he has done business and has strong relationships both inside the U.S. and with most major players in China.
The declamation on the STX and Huayi partnership started in last year in the month of October in Beijing city. Tang also told Deadline that this transaction is the part of a bigger picture deeper strategy, and a strategic alignment for both parties.