ESGC Stock: The Huge Amazon Deal Leaving Eros STX Global Starstruck

Today, Eros STX Global (NYSE:ESGC) is getting a major boost. Indeed, shares of ESGC stock have moved 26% higher as of early afternoon trading today.

A close-up shot of a hand holding a TV remote with a blurred screen in the background.
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This “mini-major studio” company has the rights to a relatively strong slate of movies. And today, the company announced that it has closed a major deal with Amazon (NASDAQ:AMZN) to stream its upcoming releases.

The streaming wars appears to be kicking into high gear. With Amazon Prime Video battling against the likes of Disney’s (NYSE:DIS) Disney+ platform and Netflix (NASDAQ:NFLX), streaming companies are paying more for content in a bid to gain market share. For content producers and rights owners such as Eros STX, this is a very good thing.

Accordingly, today’s outsized move is perhaps unsurprising. Let’s dive into some of the details of this deal, for those interested.

ESGC Stock Moving Higher on Streaming Deal

The fact that ESGC stock is higher on an expansion of an output deal is big news. However, investors are increasingly focusing on the fine print with this deal today as reason to get excited.

Specifically, this expanded output deal for the South African market is a multi-year first window deal. It expands on an existing pan-European partnership the two companies entered into earlier this year. Any sort of expansion is good news for ESGC, as it signals strong operating leverage for Eros’ content library. Should additional markets be added onto this deal moving forward, the numbers could start getting very lucrative for the company, and therefore for investors.

The existing markets covered under Eros’ previous deal were the UK, France, Italy and Scandinavia. According to reports, Amazon Prime Video will get access to highly touted upcoming movies as part of the STX portfolio. These include:

  • Memory starring Liam Neeson
  • The Marsh King’s Daughter with Daisy Ridley
  • Guy Ritchie’s upcoming spy thriller led by Jason Statham
  • Devotion starring Jonathan Majors and Glen Powell
  • Greenland: Migration led by Gerard Butler
  • Muscle starring Vin Diesel from director F. Gary Gray.

Eros STX is looking to replicate its existing success while expanding to new markets. Investors seem to like the direction this company is headed and have jumped aboard in a big way. The extent to which this momentum can be maintained remains to be seen. However, ESGC stock is beginning to see a lot of investor interest on this news.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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