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Studio behind "Euphoria" and "Moonlight" raises $225 million

Tim Baysinger
Mar 10, 2022
Illustration of a film strip with one hundred dollar bills in each frame

Illustration: Annelise Capossela/Axios

A24 announced a $225 million equity investment that values the studio behind "Uncut Gems" and "Moonlight" at $2.5 billion.

Why it matters: Streaming continues to bolster content valuations, and A24 is the latest content company to either score a big sale or a hefty investment.

  • Last year, A24 reportedly explored an outright sale, asking between $2.5 and $3 billion. It is now valued right at the low end of that asking price.

Details: This is the studio's first equity raise since its initial seed funding by Eldridge.

  • The investment was led by Stripes, whose founder Ken Fox will join A24's board. Neuberger Berman co-led a group of investors in the round.
  • Collectively, the group holds less than 10% of the company.
  • A24 will use the capital to invest in and expand its production and distribution operations.

The big picture: The streaming era has made content makers more valuable than ever as everyone seeks to own as much IP as possible.

  • Over the past six months, production companies led by Reese Witherspoon, LeBron James, Will Smith and Jada Pinkett Smith, as well as children's-focused Moonbug, have landed massive sales or investments.
  • Of those, Kevin Mayer and Tom Stagg's Candle Media has been the biggest spender. The two former Disney executives acquired both Moonbug and Witherspoon's Hello Sunshine outright, while taking a minority stake in the Smiths' Westbrook.
  • Hello Sunshine was valued at $900 million, while Moonbug — which is behind Netflix's popular "CoComelon" — sold at a $3 billion valuation.

The bottom line: A24 has been an awards darling with "Moonlight" and HBO's "Euphoria," but its films are increasingly shifting away from the box office and toward streaming.

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