A24 Secures Major Investment, Now Valued at $3.5 Billion.
A24, the renowned indie studio celebrated for its Oscar-winning films, has garnered a significant investment, reflecting a strong vote of confidence and an influx of capital. The studio announced on Wednesday that it has closed an investment round led by Joshua Kushner's Thrive Capital, which invested $75 million into A24. This investment is based on a $3.25 billion pre-money valuation, bringing the company's total valuation to $3.5 billion and netting a roughly $250 million total investment.
As part of this deal, Thrive founder Joshua Kushner will join the A24 board of directors. This investment comes at a pivotal time as A24 expands its focus towards more commercial projects featuring larger budgets and A-list talent. In early 2022, A24 raised $225 million at a $2.5 billion valuation, and the current round includes contributions from existing investors.
A24's reputation for a filmmaker-first approach has earned it many admirers in Hollywood, which has become increasingly risk-averse. The studio's early hits include Alex Garland's “Ex Machina,” Harmony Korine's “Spring Breakers,” and Barry Jenkins' “Moonlight,” which won A24 its first Oscar. The studio is known for launching the careers of directors like Ari Aster (“Midsommar,” “Hereditary”) and Robert Eggers (“The Witch,” “The Lighthouse”).
A24 has successfully produced films like “Zola,” the “X” series, and the Best Picture-winning “Everything Everywhere All at Once.” In television, A24 produced HBO's hit series “Euphoria,” Netflix's Emmy-winning “Beef,” and Showtime's “The Curse.”
The studio's “cool kid” status is bolstered by its popular merchandise, featuring the A24 logo on items like sweatshirts and hats. A24 also sells coffee table books, candles, and other movie-inspired items. Earlier this year, the studio partnered with London-based independent publisher Mack to distribute A24 books in stores, expanding from its direct-to-consumer model.
While A24 is not typically known for blockbuster box office hits, its films often achieve critical success. Some, like Ari Aster's “Beau Is Afraid,” have seen mixed results. Despite this, the studio raised a significant round of funding in 2022, positioning itself for growth. A24 is now seeking to create its versions of commercial successes, akin to “John Wick” or “Suits.” A24 TV head Ravi Nandan expressed a desire to produce content similar to “The Hills” or “Laguna Beach.”
This shift towards more commercial work has caused some confusion among A24's traditional partners, who are accustomed to the studio's unique, auteur-driven projects. Nevertheless, A24 has found success with genre films like “Talk to Me,” acquired at the 2023 Sundance Film Festival and fast-tracked for a sequel. However, the transition has not been without challenges, as seen with the production issues on HBO's “The Idol” and delays with “Euphoria” Season 3.
A24 recently released its most ambitious project to date, Alex Garland's “Civil War,” with a budget reportedly closer to $70 million, though officially placed at $50 million. The film grossed $68 million domestically and over $120 million internationally. For comparison, “Everything Everywhere All at Once” grossed over $70 million domestically on a $14 million budget.
Upcoming projects for A24 include the Benny Safdie and Dwayne Johnson MMA biopic “The Smashing Machine,” Adam Wingard's action-thriller “Onslaught,” and a collaboration with Steven Spielberg's Amblin Entertainment.
Beyond investment from Thrive, A24 has secured several production deals, including an agreement with HBO for exclusive airing of A24 theatrical movies on HBO and Max, and a distribution deal with Anuvu and Happinet Phantom Studios for Japan.
Thrive Capital, founded by Joshua Kushner in 2009, primarily invests in internet, software, and tech companies, with notable investments in Instagram, Spotify, Slack, Patreon, Stripe, and Fanatics. Thrive manages around $14 billion in assets. Former Disney CEO Bob Iger joined Thrive as a partner in 2022 and later acquired a stake in the firm.
A24 expressed enthusiasm about the partnership: “We're thrilled to be working with Thrive Capital whose unique expertise will be invaluable in our growth. With Thrive, alongside our existing partners, we look forward to growing our support of groundbreaking storytellers and helping their voices reach audiences around the world.”
