A24 sale once explored with a $3 billion asking price

Last Updated on July 30, 2021

The indie film and TV studio, A24, recently explored a possible sale with a staggering asking price between $2.5 billion to $3 billion.

The much-beloved indie studio, behind such films as Moonlight, Lady Bird, and Uncut Gems, reportedly engaged with numerous potential suitors for more than 18 months which means that the potential sale was pretty serious at some point. It's not clear if the discussions are still ongoing but, according to "Variety", A24 has expressed that they are focused on expansion and not on prioritizing a sale.

The $2.5 billion-plus asking price was reportedly met with some skepticism when the number was first thrown out but the media landscape began to change in the past 12 months which made the price tag make a bit more sense. Amazon set a deal to acquire MGM for $8.6 billion, a price that seemed pretty high to most insiders but it's a deal that ultimately went through. Reese Witherspoon also found herself in the headlines thanks to her Hello Sunshine content banner. Her company has quietly begun seeking a sale or a partner in a deal that would value the company at a $1 billion transaction. 

"Variety" reports that A24, which was founded in 2013 by Daniel Katz and David Fenkel, "hung a billion-dollar price tag around its neck" but they have been internally hesitant to close the deal and hand over the keys to the castle. A lot of this could be because, as industry insiders put it, A24 doesn't know how a rich payout such as this would affect the essence of the company. The studio is a favorite landing spot for indie filmmaking auteurs who are seeking a bit of creative freedom. A24 is a clearly defined brand and has been the home of A-list collaborators, cinephile junkies, and high-and-lowbrow taste. Would a big-money sale change its brand moving forward? That seems to be one of the main things holding the deal back.

What has made the deal a bit viable and worth looking into is that A24 has competitors that have shifted over to streaming in mass numbers. A24 needs more content and resources to keep up with the competition and that's part of the reason the company expanded into television. Hits like HBO's Euphoria, Hulu's Ramy, and Netflix's John Mulaney and The Sack Lunch Bunch, bring their unique film sensibilities to the small screen. 

At this point, A24 has grown to the point where it has over 100 employees and maintains offices in Manhattan and Los Angeles. The company has been doing fine as is, even signing a multi-year film deal in 2018 with Apple that yielded buzz-worthy titles like Sofia Coppola's On the Rocks. They also have been brilliant at marketing their titles without much help from big buyers stepping in. They turn unknown festival films into legit bait for cinephiles that build buzz within industry circles and sometimes they even crossover to the general movie public. This is also what makes them a big get for potential buyers. They want to be a part of that marketing expertise and that could still be a possibility but will all come down to exactly how much of A24's soul will go with it.

Do YOU think A24 should consider a sale?