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Blumhouse-Atomic Monster merger could scare horror competitors

Nov 22, 2022
đŸ˜±Highest grossing horror movies since 2021
Data: Box Office Mojo; Table: Tory Lysik/Axios Visuals

A merger between Jason Blum's Blumhouse and James Wan's Atomic Monster would create one of the biggest players in the horror genre.

Why it matters: Outside of superheroes, horror has been one of the few types of films that can consistently put butts in seats at movie theaters.

The big picture: The newly combined company will boost Universal's output in the genre, which has had a fruitful partnership with Blumhouse.

  • Along with Universal, horror has boosted Paramount with films like "A Quiet Place II" and "Smile," which have been the top-grossing horror movie of 2021 and 2022, respectively.

Between the jump scares: Horror movies are attractive for studios since they are significantly cheaper to make.

  • Blum pioneered the "microbudget" business model, in which films are made for no more than $5 million, which gives them a much higher chance of turning a profit.
  • Between Blumhouse and Atomic Monster, they have multiple horror franchises including "Paranormal Activity," "The Conjuring Universe" and the recent "Halloween" trilogy.

Of note: It's not just horror that Blumhouse is getting. Atomic Monster is a producer on Warner Bros.' upcoming "Aquaman" sequel, which Wan is directing.

What's next: Whether or not the combination will mean Blumhouse looks to get bigger or even thinks about an IPO.

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