Neon officially sold a significant stake to indie production company Department M following February reports that a deal was brewing, the companies announced Friday.
The transaction provides meaningful growth capital to Neon to continue expanding its operations and to launch Neon TV, the announcement said.
Neon founder Tom Quinn will remain on as CEO while Department M partner Michael Schaefer will become its chief content officer. Department M partner Mike Larocca will remain at Department M and joins the Neon board. Jeff Deutchman will continue as president of acquisition, production and development for film and Carina Sposato will join as television EVP, both reporting to Schaefer.
Department M is also contributing development assets and production-ready projects. Longstanding Neon backers The Friedkin Group remains significant shareholders and board members.
Since distributing the best picture winner “Parasite” in 2019, Neon has established itself as a leading distributor of international cinema in the U.S., releasing four of the five nominees in this year’s best international feature Oscar category, including Joachim Trier’s “Sentimental Value” and Jafar Panahi’s Palme d’Or winner “It Was Just an Accident.”
Neon most recently released genre films like “Exit 8,” the Japanese horror film based on the indie video game of the same name, and Boots Riley’s colorful crime comedy “I Love Boosters.”
Looking ahead, the distributor recently acquired Ryusuke Hamaguchi’s “All of a Sudden,” which marks the company’s first acquisition out of this year’s European Film Market in Berlin, with Sarah Colvin negotiating the sale on behalf of the distributor alongside Renan Artukmaç for Cinefrance Studios.
Neon also nabbed U.S. domestic rights for Sundance documentary “Once Upon a Time in Harlem,” following a heated bidding war earlier this year. A theatrical release is planned for later this year.
And with Cristian Mungiu’s “Fjord” out of Cannes, Neon took home its seventh consecutive Palme d’Or win, a streak that began with “Parasite” in 2019.
