‘Moonlight,’ ‘Euphoria’ studio A24 raises $225 million amid Hollywood deal frenzy

A24, the impartial studio behind the Oscar-winning “Moonlight” and HBO’s “Euphoria,” has closed an fairness funding of $225 million to fund enlargement plans.

New York-based A24 mentioned Wednesday it will use the capital to develop its manufacturing and distribution enterprise and develop different initiatives.

The funding spherical was led by Stripes, a agency based by New York investor Ken Fox, who could have a seat on A24’s board. The group of latest traders will maintain lower than 10% of A24.

The deal values the corporate at about $2.5 billion, in response to individuals aware of the deal who weren’t approved to remark.

A24 is the most recent leisure firm to boost capital or promote an fairness stake amid a frenzy of deal making within the leisure house, as traders look to purchase into the surging demand for content material on streaming companies.

Reese Witherspoon’s Hi there Sunshine bought a majority stake valuing the “Massive Little Lies” agency at $900 million. LeBron James and Maverick Carter’s SpringHill Co. secured a personal fairness deal putting the corporate’s valuation at $725 million. “Dune” studio Legendary Leisure in January bought a minority stake to Apollo World for $760 million.

Based in 2012, A24 made a reputation for itself by releasing edgy impartial movies similar to “Spring Breakers.” It grew to become identified for critically acclaimed films such because the Safdie brothers’ “Uncut Gems” starring Adam Sandler and Greta Gerwig’s “Woman Hen.” Its queer Black drama “Moonlight,” from Barry Jenkins, gained the Oscar for greatest image in 2017.

Hypothesis has swirled round A24 for years. The corporate had lengthy remained reluctant to tackle outdoors traders, regardless of rumblings that Apple had kicked the tires.

The deal marks the primary fairness elevate for A24 for the reason that preliminary seed funding by Eldridge, which stays a minority stakeholder, the corporate mentioned.

The theatrical field workplace marketplace for indie movies has struggled to recuperate from the COVID-19 pandemic, as extra adult-skewing films head to streaming.