PCCW Ltd and Tencent Holdings Ltd are leading an investment round in STX Entertainment, giving the distributor of the feature films Bad Moms and The Gift funds to build its TV division, expand internationally and acquire digital media startups.

The deal values STX, founded by producer Robert Simonds and private-equity investor Bill McGlashan, at almost $1.5 billion, according to a person with knowledge of the matter. The companies, which announced the funding in a statement on Thursday, declined to comment on the financial details.

Though STX began by making movies, Simonds wants to build a more diverse media enterprise that makes TV, virtual-reality content, short-form video and mobile applications. Including an expanded credit facility, STX now has more than $700 million to accelerate its spending on production and acquisitions, said the person, who asked not to be identified because the terms aren't public.

"Our intention was never to just make a bunch of movies. We built up the movie division to attract stars and storytellers," Simonds said.

Simonds plans to offer actors and filmmakers creative opportunities ranging from personal apps to virtual-reality experiences. The company will seek acquisitions in the coming months to help realize those ambitions, he said. STX plans to release a dozen motion pictures a year and has secured deals for 22 television shows, according to the statement.

"We want to go out there and make some inorganic purchases," Simonds said.

The tie-up with PCCW, a telecommunications company controlled by billionaire Richard Li, will give STX access to audiences in Hong Kong, Southeast Asia and India. The company also has a content partnership with Tencent, Asia's biggest internet company.

Bloomberg