A24 Explores Sale For $2.5 - $3 Billion

[rageofthegods]

Indie Film and TV Studio A24 Explored Sale With $3 Billion Asking Price (EXCLUSIVE)

A24 has engaged with potential suitors for more than 18 months with an aggressive asking price of $2.5 billion to $3 billion.

variety.com

Insane price for A24.

 

[Nick]

Indie Film and TV Studio A24 Explored Sale With $3 Billion Asking Price (EXCLUSIVE)

A24 has engaged with potential suitors for more than 18 months with an aggressive asking price of $2.5 billion to $3 billion.

variety.com

Insane price for A24.

This is just Business 101. Come out with a high asking price so that when you sell, you end up getting what you actually wanted.

 

[PerceptiveCoot]

All I have to say is I hope they go to a traditional studio and go see The Green Knight on July 31st.

 

[Nick]

All I have to say is I hope they go to a traditional studio and go see The Green Knight on July 31st.

With Disney recently buying Fox, Discovery merging with Warner, Amazon buying MGM, and Comcast looking at Viacom, the only real viable suitors I see are Roku, Apple, Netflix, or...? Sony isn't gonna purchase anything and they'd be the only traditional studio left to buy them.

I feel like one of the digital platforms actually suits them best as especially with an Apple or Netflix, their movies will actually get seen. Many people miss great A24 movies because they don't want to go to a theater for an indie film.

 

[rageofthegods]

This is just Business 101. Come out with a high asking price so that when you sell, you end up getting what you actually wanted.

Ordinarily I'd agree, and I doubt it goes as high as 3b, but in today's market who knows.

 

[Nick]

Ordinarily I'd agree, but in a world where MGM can sell for 8.6b...

I know it's the lesser MGM since they don't have any of the Classic MGM stuff, but MGM distributes a crap ton of stuff, not only movies, but mostly TV and TV that people watch and are addicted too. Reality shows or things like The Handmaids Tale are just two things i'll say before I could go into the Bond of it all or their actual movie catalog and honestly, what does A24 have that comes close to being worth the value of The Handmaid's Tale alone? Uncut Gems and Midsommar aren't worth THAT much.

 

[rageofthegods]

I know it's the lesser MGM since they don't have any of the Classic MGM stuff, but MGM distributes a crap ton of stuff, not only movies, but mostly TV and TV that people watch and are addicted too. Reality shows or things like The Handmaids Tale are just two things i'll say before I could go into the Bond of it all or their actual movie catalog and honestly, what does A24 have that comes close to being worth the value of The Handmaid's Tale alone? Uncut Gems and Midsommar aren't worth THAT much.

The argument probably centers on brand and human capital. And you're discounting A24's own TV efforts, like Euphoria.

You're not wrong though, there wasn't really a case for MGM going for the price it did and A24 seems even less justifiable. From the article it sounds like Apple already passed, like they did with MGM.

 

[Nick]

The argument probably centers on brand and human capital. And you're discounting A24's own TV efforts, like Euphoria.

You're not wrong though, there wasn't really a case for MGM going for the price it did and A24 seems even less justifiable. From the article it sounds like Apple already passed, like they did with MGM.

I can see where the brand/human capital part might be a place of appeal. I imagine many studios are kicking themselves for letting Marvel comics and Lucasfilm BOTH go for only a combined $8B, so buying these types of studios at inflated prices is more because 1. Amazon can afford MGM at that price many times over, and 2. It's better to have it than not.

The thing is to me though, sure, Midsommar and Uncut Gems were big back in 2019, but could anyone (whose not a movie geek) actually tell you what studio made those films? Aside from being the best indie studio not named Searchlight Pictures, I don't know what they actually offer in terms of brand appeal. They need to take their time, build the branding, have some more awards contenders/winners, and really earn that.

 

[ThemeParks4Life]

If potential buyers just want the company's talent, negotiate offers with them (if they even want to leave). If the company heads want to sell, they should wait a few more years for a higher valuation. A24's rapid growth has only been for the past 4-5 years with no signs of slowing down; why ruin the brand now?

 

[Nick]

If potential buyers just want the company's talent, negotiate offers with them (if they even want to leave). If the company heads want to sell, they should wait a few more years for a higher valuation. A24's rapid growth has only been for the past 4-5 years with no signs of slowing down; why ruin the brand now?

I don't think any buyer would ruin the brand. Hell, Disney empowers Searchlight to do their own thing and to continue to grow their brand. It's basically the same studio as it was before the merger, just different ownership. If Disney (which is known as a family brand) is willing to do that, then I don't see why anyone would completely gut A24 for parts when there aren't even a ton of parts yet seeing as it's a newer studio.

 

[OrlandoGuy]

This is just Business 101. Come out with a high asking price so that when you sell, you end up getting what you actually wanted.

It’s really not :doh:

Come up with a reasonable price that won’t get you laughed out of the room. Not only this time around, but for the next time after that (so if you bring a reasonable valuation to the table you’re not automatically written-off). A lot of talk about brand in this conversation…well branding works for B2B too.

 

[Nick]

It’s really not :doh:

Come up with a reasonable price that won’t get you laughed out of the room. Not only this time around, but for the next time after that (so if you bring a reasonable valuation to the table you’re not automatically written-off). A lot of talk about brand in this conversation…well branding works for B2B too.

I would have laughed MGM out of the room at their price and Amazon said thank you very much. Right now seems to be buying season among pretty much everyone, maybe A24 was just seeing if anyone was crazy enough to spend that kind of money on them and if so then sure, they'll sell. If not, they didn't expect anyone to buy at that price anyway.

 

[AlexanderMBush]

With Disney recently buying Fox, Discovery merging with Warner, Amazon buying MGM, and Comcast looking at Viacom, the only real viable suitors I see are Roku, Apple, Netflix, or...? Sony isn't gonna purchase anything and they'd be the only traditional studio left to buy them.

I feel like one of the digital platforms actually suits them best as especially with an Apple or Netflix, their movies will actually get seen. Many people miss great A24 movies because they don't want to go to a theater for an indie film.

I think logistically, it comes down to Apple or Netflix. Apple could honestly benefit a lot if they get A24, especially for the range that the studio has.

 

[Cup_Of_Coffee]

Netflix wants to continue to be an awards presence I would imagine and nabbing A24 does that. Love the studio also, many of my favorites are made by them.

 

[Grabnar]

With that asking price, Apple seems like who they're angling for.

 

[Jerroddragon]

Well...great ruin my favorite studio

The reason I like their films is they are made as straight up Art....sure they want money but it seems like number 2 after making a great film