Blumhouse-Atomic Monster merger could scare horror competitors
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.