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.