Lionsgate is exploring a potential acquisition of some or all of STX Entertainment, the independent studio behind Hustlers, The Hollywood Reporter has confirmed.
The deal, if it comes together, would effectively unwind a sale announced last month to the private equity firm Najafi Companies, for $173 million. There are other bidders interested in STX, a source familiar with the matter said.
The Indian film giant Eros, which merged with STX in 2020, had sought to unload STX in order to manage the company’s debt load. It had initially tried shopping its film library, but later pursued a full sale.
Lionsgate has been a source of significant M&A speculation in recent months, given its independent status and substantial film and TV library. In November, the company announced that it would explore options for its Starz premium channel/streaming service, including a sale or spinoff. If that deal were to happen, Lionsgate would become a pure-play film and TV studio, and could benefit from a beefed up library such as the one owned by STX.
Lionsgate itself has been named as a potential acquisition target by Wall Street analysts.
Representatives from Lionsgate and STX declined to comment.
Variety first reported the sale talks.
