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A24 Exploring Sale Upwards of $3B

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Well... 

 

https://variety.com/2021/film/news/inside-a24-billion-dollar-sale-1235018988/

 

Some highlights:

 

Quote

While one top content broker said the company founded in 2013 by Daniel Katz and David Fenkel had “hung a billion-dollar price tag around its neck,” A24 has been internally hesitant to cross the finish line and hand over the keys.

...

Possible scenarios for a deal have included merging with standalone players or an outright absorption by a tech giant. A24’s tires were kicked by 
Apple, with whom it signed a multi-year film slate deal in 2018 that has yielded titles like Sofia Coppola’s “On the Rocks.” Though some sources said the Apple acquisition talks happened closer to the slate announcement, two other insiders said talks were much more recent.

...

This is not the first time A24 has been out in the market looking for capital and potential partnerships. Following the success of “Moonlight,” which won the Oscar in 2016 for best picture, the company engaged in a roadshow with some of the major studios, one knowledgeable source said, seeking significant financing and some form of joint venture. Talks ended quickly as A24 was unwilling to offer any equity in their business, added the source.

 

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6 minutes ago, Ryan Reynolds said:

their films don't make money, its probably a money laundering scheme

 

Lady Bird $79M Box Office  10 Mill Budget

Hereditary $81M Box Office , 10 million Budget

Moonlight 65M Box office, 4 million Budget

 

Some of there films have done quite well.

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5 minutes ago, HouseOfTheSun said:

lucasfilm was one of the biggest bargains in the history of IP acquistion. you cant really judge based on that

 

Also was done 9 years ago. things have changed quite a bit since then and other studios/streamers want content now. Why is this and Reese Witherspoons company and Lebrons company all looking to sell now. What did Amazon just pay for MGM. The market is inflated right now. Not sure that makes A24 worth 3 Billion but I guess you dont get if you dont ask.

 

Anyway my point was some of there films have done pretty well. Which is a little different than "there films dont make money".

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18 minutes ago, SpiderByte said:

Apple seems like a likely bet.

 

Apple and A24 have been connected for quite a while.  If one is a betting person, it's Apple vs The Field, IMO.

 

If anything it comes down to just how much Apple really cares about its streaming service. If they care?  They got the cash (and then some) to make a deal happen (if not at the 3b price point).

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The Pros of Apple Buying A24

  • More money can be poured into various A24 projects, giving a higher budget to projects that may require it.
  • It gives more content to a promising streaming service that, honestly, needs more content.

The Cons of Apple Buying A24

  • Commercialism. I've seen that the vast majority of AppleTV+ films and series (both already released and in development) are marketed and presentable in a way that caters to the Barnes-&-Noble-ish "general audience" entertainment market. This is somewhat true for stuff like PalmerGreyhound, WolfwalkersSchmigadoon!Central Park, The Morning Show, and The Snoopy Show. This is a statement that I'm making irrespective of the various levels of quality or acclaim that each film or series has been able to reach. But it's a concern when it comes to A24 because there's quite a few films that are artistic, bold, daring, etc. in a way that the average Barnes-&-Noble-ish "general audience" story isn't. I would be happy to see the A24 catalog find a concrete home, but I'm worried that being under Apple's banner would change the way certain A24 films are made and dissuade filmmakers from sprucing films similar to Uncut GemsLady Bird, and Ex Machina with the directorial and technical traits that made them special in the first place.
    • This can be seen as a smaller problem than I'm making it out to be considering how a solid amount of A24 films already seem like a good fit for Apple. RoomMinari. Last Black Man in San Francisco. There's just enough A24 films that feel like natural fits for an AppleTV+ catalog to make Apple's purchase of A24 seem like a good idea on paper. And the last thing I want for A24 is for it to go the way of Orion or Miramax, where they spearhead many of their era's greatest films only to fall out of the equation due to financial woes. Like, we're talking about the same streamer that's pumping money money into Killers of the Flower Moon, and also the one that's proudly presenting CODA, which will be seen as one of the best independent films of 2021. I just hope that a thirst to cater to "everyone" or "more viewers than ever before" doesn't get to the A24 executives' heads over the next few years. Yeah.
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31 minutes ago, Porthos said:

 

Just coz they're asking for 3 bil, doesn't mean they're gonna get it.

Bottom Line 1, Ask for 3, Compromise at 2. 

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9 hours ago, Cap said:

Bottom Line 1, Ask for 3, Compromise at 2. 

 

103 films though and the majority didn't even make much money.

 

MGM has like thousands.

 

I guess if you look at it as a permanent acquisition - and the fact that most are widely unknown they could be sold as new, maybe it make sense in a market where content is premium, but still seems super expensive. I'd think they'd be worth less than 1B.

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37 minutes ago, BK007 said:

 

103 films though and the majority didn't even make much money.

 

MGM has like thousands.

 

I guess if you look at it as a permanent acquisition - and the fact that most are widely unknown they could be sold as new, maybe it make sense in a market where content is premium, but still seems super expensive. I'd think they'd be worth less than 1B.

 

Agree completely and yet I think Apple still buys it for 2 Billion give or take because this kind of money has no effect anymore for Apple and Apple might as well target the A24 groupies.

 

But yeah compared to MGM.  Its not like anything in the A24 catalogue is a franchise. While its not bad to have a Moonlight and Lady Bird as a catalogue titles its not billion nice.

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What a rip off.

 

Disney bought Marvel for 4 billion.

 

You can't make multi-billion dollar franchises and theme parks based on Moonlight and Ladybird. In fact, there's not much more money to be made from those movies. Well not compared to Marvel and Star Wars films.

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