While we have known that Neon was exploring a sale or new funding for a major stake in the company for a while, many may be surprised by who is at the front of the queue to take that stake: Department M. As that likely doesn’t mean much to anyone but the most dedicated film connoisseur, we have an entertainment lawyer Los Angeles at Blake & Wang P.A., Brandon Blake, to fill in the full story.
Neon Expansion
Currently, Neon is one of the biggest players in domestic specialty offerings, and they have been a major buyer at almost every post-pandemic film festival to date, including 6 consecutive Palme d’Or winners.
It’s currently unclear exactly how large the stake in Neon that is up for grabs really is. However, it is currently backed by a private investment consortium about which few people have any real knowledge. And Neon is playing the (potential) deal close to its chest, with no official statement on the matter.
Who is Department M?
Department M is a production company founded just over 2 years ago and led by Mike Larocca and Michael Schaefer. Larocca was the president and co-founder of the production banner fronted by the Avengers directors, AGBO. Schaefer moved to Department M from his former role at New Regency.
You may recognize some of their titles, of which The Christophers, to be released by Neon, is the latest. Neon picked up the title at last year’s TIFF. They were also responsible for The Hand That Rocks the Cradle’s recent remake, and the Jo Nesbø novel adaptation, Blood on the Snow.
We last heard news of a potential sale for Neon in 2022, but the deal fell through. With a couple more Oscar nominations and wins under their belt, and the mass commercial success of Longlegs to boot, Neon is currently a hot property, but recently had something of a brain drain, which may be why they are looking for new partnerships in the first place.
Film and Television 