Hollywood Merger Frenzy Turns to Bidding for Billion-Dollar Production Companies

Premium content companies like A24, Imagine, Hello Sunshine and SpringHill are exploring sales as streaming changes the business

After swallowing most of Hollywood’s major entertainment companies, cash-rich financiers have now turned to the next tier of premium content companies: Indie studio A24, top-shelf production company Imagine Entertainment and star-driven boutiques like Reese Witherspoon’s Hello Sunshine and LeBron James’ SpringHill are among the targets of interest.

The sale prices for these companies — or at least the prices floated in the media — have stunned many in Hollywood with billion-dollar valuations and multiple bidders in the mix. A Bloomberg report said Nike and others were looking at James’ SpringHill at a $750 million valuation; Hello Sunshine is in the marketplace seeking to bag $1 billion; while A24 has reportedly been in discussions with potential buyers for $2.5 billion to $3 billion seeking to own the rights to art-house hits like “Uncut Gems” and “Minari.”

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Tim Baysinger

TV reporter • tim.baysinger@thewrap.com • Twitter: @tim_bays

Beatrice Verhoeven, PWS

Beatrice Verhoeven

Film Editor, Twitter: @bverhoev