A24, the Oscar-winning studio behind hits like Moonlight and Midsommar, recently explored a sale. The asking price to own the A24 name and its library of prestigious indie flicks? Around $3 billion. While that may seem high for a studio that hasn’t even been around for a decade, A24 has made quite the name for itself in recent years. And, perhaps more importantly, the media landscape has changed a great deal, with the streaming wars heating up and every company vying for subscribers desperate for high-profile content.
According to a new report, within the last 18 months, A24 explored a possible sale. The price tag was said to be between $2.5 and $3 billion. While nothing ultimately came to pass, at least not yet, it is said that the company engaged with multiple possible suitors. Apple was named as one of those possible destinations. That would make sense, as Apple TV+ is in serious need of a way to boost its profile as it attempts to compete with the likes of Netflix, Disney+, HBO Max and others in the streaming game. Plus, Apple already has a deal in place with A24. The company released Sofia Coppola’s On the Rocks last year.
A24 made its entry into Hollywood with 2013’s A Glimpse Inside the Mind of Charles Swan III. While that movie didn’t make a huge splash, it wasn’t long before the industry began to take notice. Moonlight, released in 2016, went on to win the Oscar for Best Picture. Since then, it has become a destination for creative visionaries and a name that, generally speaking, commands a certain respect. Other notable releases from the studio include Uncut Gems, The Lighthouse, Eighth Grade, Lady Bird, Swiss Army Man and The Witch. A24 also has Zola in theaters now, with The Green Knight arriving later this month.
Combined, A24’s releases have grossed more than $800 million at the global box office. Its highest-grossing effort to date was 2018’s Hereditary, which got a great deal of festival buzz on its way to becoming a major critical and financial success. Though the studio is not without its flops, with Trespass Against Us and The Death of Dick Long, just to name a couple. But even the studio’s flops might find new life in the streaming world, if the A24’s entire library were featured on a single streaming platform, for example. There is perceivable value in this studio for the right company. But is it $3 billion worth of value? That is the big question that has yet to be answered.
Amazon recently made a deal to acquire MGM for more than $8 billion. That is roughly what Disney paid for Marvel and Lucasfilm combined. That illustrates just how much things have changed over the last year or so. Initially, that $3 billion figure was reportedly drawing some skepticism. Now? Perhaps not so much. Whether or not this sale is explored again in the near future remains to be seen. But this could be the next major media merger to keep an eye on. This news comes to us via Variety.