Amazon’s recent acquisition of MGM Studios and the mega-merger between Discovery and WarnerMedia are the most recent indicators of a new era of consolidation among Hollywood studios. The streaming wars are driving the search for new, original content, and this week Variety was the first to report on mounting interest in A24, the New York-based studio responsible for the award-winning features Moonlight and Uncut Gems and the critically acclaimed TV series Euphoria and Ramy.
It has been rumored for years that A24 has tested the waters of being acquired. However, potential suitors have been put off by the studio’s steep asking price of $2.5-$3 billion, given their limited slate of content. However, Amazon’s recent purchase of MGM has caused a shift in the market for content, making A24’s price tag seem more reasonable. A24’s appeal lies in their brand, which has been built by a strong slate of indie hits and a savvy marketing of their titles. Ever since Daniel Katz and David Finkel founded their studio in 2012, they have navigated the treacherous waters of indie film distribution to become a reliable provider of features that appeal to cinephiles.
Some speculate that A24 may be a natural fit for Apple, whose Apple+ streaming service with its 40 million subscribers is lagging behind the industry leading services of Netflix, Amazon and Disney. Apple has previously worked with A24 on distribution deals for certain A24 feature films and TV series.