Neon Exploring Sale After Recruiting Investment Bank Raine

The “Parasite” distributor is testing the market after A24 sold a minority stake for $225 million

Parasite Neon

“Parasite” distributor Neon is exploring a sale of some or all of its business and has tapped the merchant bank Raine in order to assess its options, an individual with knowledge of the company’s thinking told TheWrap.

It’s unclear what the distributor founded by Tom Quinn and Tim League would be valued at, and there’s no guarantee that such a sale could occur or that a process would result in a deal.

Neon had no comment.

A24, one of Neon’s biggest rivals, sold a minority stake of $225 million earlier this year from the investor Stripes, which valued the distributor at $2.5 billion.

According to the New York Times, which originally reported the news, Neon is looking to expand its distribution internationally and would even be looking to explore opportunities in television and streaming. Any funding would also go to bolstering its existing production arm.

Coming up on its slate, Neon, which was founded in 2017, has the David Bowie concert documentary “Moonage Daydream” and drama “Triangle of Sadness,” which won the Palme d’Or at this year’s Cannes Film Festival. They also recently released David Cronenberg’s “Crimes of the Future.”

The distributor first got on the map when they shepherded “Parasite” into becoming the first foreign language film to ever win the Best Picture Oscar.

The news about Neon exploring a sale comes amid a wave of M&A activity in Hollywood over the last few months and years, including companies owned by Reese Witherspoon, Will Smith and LeBron James all looking to investment and acquisition opportunities.

The New York Times first reported the news.