Independent studio Neon could soon see a new ownership structure as Department M enters talks to acquire a significant stake in the Oscar-winning distributor behind Parasite and Anora.
Department M, founded two years ago by veteran executives Mike Larocca and Michael Schaefer, is reportedly backed by a consortium of private investors in its bid to invest in Neon. The company itself launched in 2024 with financial support from private backers, positioning itself as a production-focused entity with ambitions to scale strategically.
As per reports by media outlets, the potential transaction would involve Department M acquiring a meaningful ownership position in Neon, though financial terms and the exact size of the stake have not been disclosed. The negotiations are understood to be ongoing, and no final agreement has been announced. The development marks one of the more significant movements within the independent film sector this year.
Founded in 2017, Neon rose to global prominence after distributing Parasite, which became the first non-English-language film to win the Academy Award for Best Picture. The studio has since built a reputation as a curator of filmmaker-driven cinema, consistently backing international auteurs and festival standouts.
Its recent slate includes titles such as Joachim Trier’s Sentimental Value, Jafar Panahi’s Palme d’Or winner It Was Just An Accident, Kleber Mendonça Filho’s The Secret Agent, Oliver Laxe’s Sirât, Park Chan-wook’s No Other Choice, and Ugo Bienvenu’s Arco. The lineup underscores Neon’s continued focus on globally recognized filmmakers and prestige festival fare.
At the same time, Neon has demonstrated an ability to deliver commercial hits. The horror release Longlegs became one of the company’s most successful box office titles, grossing nearly $130 million worldwide during its theatrical run in 2025 — a rare feat for an independent distributor operating in the genre space. The performance reinforced Neon’s position as a studio capable of balancing awards-driven cinema with audience-friendly programming.
The current discussions follow an earlier attempt to explore a sale in 2022, when negotiations with investor Steven Rales did not ultimately materialize into a deal. The renewed interest signals that Neon remains an attractive asset for investors seeking exposure to prestige and internationally recognized film brands.
For Department M, acquiring a stake in Neon would represent a significant expansion beyond production into distribution and global sales relationships. Larocca and Schaefer bring extensive experience across both studio and independent sectors, and a partnership with Neon would provide immediate access to an established infrastructure within the festival and awards ecosystem.
The broader industry landscape adds further context. Independent distributors are navigating evolving theatrical economics, streaming consolidation and intensified competition for high-profile acquisitions. Strategic investments and equity partnerships have become increasingly common as companies seek capital support while preserving brand identity and creative independence.
Should the negotiations result in a finalized agreement, the deal could signal a new phase of growth for Neon while positioning Department M as a more influential player within the independent film marketplace. For now, the talks highlight continued investor appetite for prestige-focused studios with global reach and a proven track record in both awards recognition and commercial performance.
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