Producer Robert Simonds Backed STX Entertainment Vouches For a Long-Term Venture!
From its launching in 2014 to date, Hollywood famous film producer Robert Simonds is working tirelessly for his big and renowned studio, STX Entertainment. He partnered with a private equity investor, Bill McGlashan to launch STX Entertainment studio with an aim to produce films of mid–range budget. They planned to invest around $20 million to $80 million to produce films with big–name actors.
Backed by TPG Growth, Gigi Pritzker and number of International investors including China’s equity firm Tencent and Hongkong based PPCW, Robert Simonds announced their plan to make it a major studio in future. Robert Simonds boldly announced that we are planning to invest nearly $1 billion in coming five years.
Previously in 2014, STX Entertainment planned to produce and distribute nearly 8-10 movies a year. And later on in 2015, STX Entertainment pact with the China-based entertainment company, Huayi’s Brother and planned to co-produce 12-15 movie projects a year. According to this three years deal, Huayi’s brother gets involved almost in all operation of STX Entertainment i.e. production, finance, distribution.
Recently in 2018, when the pact has expired, Huayi’s brother wants to renew and deepen this existing relationship with STX. CEO of Huayi’s brother said,” STX has the number of plans in television and multimedia market and a lot of plans to explore the Asian market.”
Deal with Huayi’s brother opened the number of ways for its Los Angeles based Hollywood studio and helped a lot to enter in the China film industry, known to be a big film industry. This way Robert Simonds moved its first step of becoming a bridge between the Hollywood and China film industry.
The largest stakeholders in STX Entertainment is TPG Growth. Bill McGlashan, the cofounder of STX Entertainment and head of TPG growth, had 25 years of working experience with Chinese. “We have known Hony Capital since it was launched. So we are known to each other.” McGlashan said. Read more updates about STX here: Can Bob Simonds make STX Entertainment be the Next Major Studio in Hollywood?
In 2014, China based equity firm, Hony Capital invest nearly $1 billion in to Hollywood new startup studio. Robert Simonds announced the production of 15 films a year by 2017.
STX has made the direct distribution agreements with world largest North American Theatre chains such as AMC, CineMark, Carmike, Regal. In January 2015, during premium television window, STX signed an agreement, multiyear television output agreement so that STX can release its films on the Showtime Networks and later on in 2019, covering all its theatrical releases. In April 2015, Robert Simonds’ STX entered into a long-term partnership with Universal Pictures Home Entertainment.
Recently in 2018, Robert Simonds is now planning to raise more funds by Initial Public Offering to diversify his company to various platforms including social media, virtual reality, multimedia etc.
Still, Robert Simonds faced a lot of challenges while starting this new Hollywood studio from scratch. Hollywood film industry is littered with the number of studio that started with a number of plans and finally ends up to failure. You can see Orion pictures and savoy pictures now became just a memory.
Simonds, best known for its number of Steve Martin starring comedy movies such as “Cheaper by the Dozen”, and “Pink Panther” and “Water boy” starring by Adam Sandler, is growing and building his STX entertainment at an aggressive rate.