Sophie Watts

In 2011, Watts started working with Robert "Bob" Simonds as they began to build a next-generation film, television and multimedia company. The goal of the company was to “make, market and distribute star-driven, commercial" content.[16] Incubated by the private equity firm TPG Growth, the company grew to secure investments from Chinese private equity firm Hony Capital, and others including philanthropist and filmmaker Gigi Pritzker and businessman William “Beau" Wrigley. In 2014, the company announced that it had secured over $1 billion in financing. Other core executives of the STX team included former Viacom Entertainment Chief Operating Officer Tom McGrath (media executive), who functions as the company's COO, and former Crest Animation CEO Noah Fogelson as General Counsel.[17]

Rather than pursuing the traditional distribution process, STXfilms, the film studio division of STX Entertainment, secured direct distribution agreements with North American theater chains AMC, Regal, Cinemark, Goodrich, Marcus Theatres and Carmike Cinemas.[18] Later on in 2014, STXfilms hired a series of film and media executives, including former Universal Pictures Chairman Adam Fogelson and former Disney production and marketing chief Oren Aviv.[19][20]

In January 2015, STXfilms signed a multiyear television output agreement to release its films exclusively to Showtime Networks during the premium television window, beginning in 2015 and covering the studio’s theatrical releases through 2019.[21] In April 2015, STXfilms entered into a multiyear partnership with Universal Studios Home Entertainment, with Universal handling marketing, sales and distribution services for Blu-ray, DVD and VOD platforms of STX’s theatrical titles in North America.[22]

The studio subsequently closed a three-year film slate deal with Huayi Brothers, one of China's largest film companies, which will enable STX to co-produce and co-distribute 12 to 15 films annually.[23] The studio announced that it would make at least 10 “commercial” movies a year and that it would function as a next-generation, fully integrated film studio.[11]

STXfilms projects include Bad Moms, Molly's Game, Jackie Chan-starrer The Foreigner, and The Gift. In 2016, STXfilms became the fastest studio that year to hit $100-million at the domestic box office with Bad Moms, earned a People's Choice award winner for best comedy for the film, garnered a Golden Globe nomination for Hailee Steinfeld in The Edge of Seventeen and procured DGA Best New Director nominations for The Gift and The Edge of Seventeen. In October 2017, STXfilms' The Foreigner, a co-production with Jackie Chan's Sparkle Roll Media, crossed $100 million in box office globally. The film was termed "a clear winner given that it cost just $35 million to produce" and "a fine example of how a Chinese co-production can work."[24][25][26] Later on in 2017, the studio secured two Golden Globe nominations for writer Aaron Sorkin's directorial debut Molly's Game.

In April 2016, Watts announced the opening of STXinternational, headquartered in London and led by former Film4 head David Kosse.[27] Four months later, STX Entertainment announced that it had closed its Series C of financing, led by investors including Hong Kong telecommunications company PCCW Ltd., which is controlled by Richard Li, and Tencent Holdings Ltd. As part of the funding, STX also received new investments from East West Bancorp’s Dominic Ng, as well as existing investors TPG, Hony Capital, business interests of Gigi Pritzker, Michael Pucker and their immediate family, and William Wrigley Jr. The deal valued STX at almost $1.5 billion. On announcement of the deal, the company announced that funds from this round of financing would be used to build its TV division, expand internationally and acquire digital media start-ups.[5]

In August 2016, Watts announced that she had acquired for STX the Virtual Reality creator and distributor Surreal, which was founded in 2015 and in its first year produced over 70 immersive VR experiences.[28][29] In November 2016, STXtv's Reality division launched under Watts' purview the variety show Number One Surprise, the first television show created by a US-based company specifically for broadcast in China. Its premiere on Hunan TV and digital platforms was viewed nearly 300 million times, and by March 2017 it was the #1 show in China with over 1 billion total views.[30][31]

In January 2017, it was announced that STX Entertainment had signed a three-year marketing and distribution agreement with EuropaCorp's American division. Under the deal, STXfilms released Their Finest, The Circle and Valerian and the City of a Thousand Planets.[32][33]

In November 2017, STXtv announced its first scripted show, entitled "Valley of the Boom," a drama/documentary hybrid limited series about the ’90s tech boom from showrunner and director Matthew Carnahan (House of Lies) and executive producer Arianna Huffington. The show is set to air on NatGeo.

In September 2017, it was reported that STX may be close to an initial public offering on the Hong Kong Stock Exchange (SEHK) starting in early 2018. While based in the US, the company has numerous corporate and business relationships with China, and it has been reported that a listing on the SEHK could make it easier for Chinese companies to invest in Hollywood films. STX was valued at $1.5 billion in 2016. In September 2017, the Wall Street Journal stated that the company could be valued at $3.5 billion after raising an additional $500 million following the IPO.[34][35][36] At the end of November 2017, John Malone's Liberty Global invested an undisclosed amount of money in the company, with an executive having a seat on STX's board.[37] In April 2018, STX filed preliminary paperwork for its planned initial public offering on the Hong Kong Stock Exchange.[38]

In January 2018, Watts prompted surprise across the media industry by resigning from her role as President at STX Entertainment, where she directly oversaw businesses including television, digital media, and virtual reality.[39] She credited her departure to a desire to focus on "new and more aggressive opportunities" in the media space.[40] In a mutual press release, STX Co-Founder Robert Simonds praised Watts as "a force of nature...[an] incredibly talented, versatile executive who has been central to every aspect of growing the company, both domestically and internationally, from inception to the multi-billion-dollar endeavor it is today.".[41] Watts and Simonds had been working together on the idea for STX since 2011.[42]