In the rumor mill this week is the idea that A24 is for sale for $2.5-$3 billion. Right now Apple seems to be the most likely suitor.
Behind it is Amazon, which just bought MGM for almost $9 billion and is looking to expand the offerings on its app as fast as possible.
These are unprecedented times, and industry leaders are looking to keep up with the streaming wars by having content that keeps people coming back for more. Even though A24's biggest hit was Hereditary, which only made $80 million worldwide, they could be the right company to seduce bigger filmmakers to work with them and thus entice more people to the app, or just have an unserviced market share that no streamer has really tapped.
Jimmy Schaeffler, CEO of media consultancy firm the Carmel Group, told Indiewire, "It’s like buying a really premium property in LA. You’re ideally going to find a nice, comfortable place for your family and in the best of situations you’re going to watch the value of that going up just as you live in it.”
With all these players making moves, it seems like many studios might consolidate under these huge tech banners, which can afford to gobble up smaller places. As I said before, Amazon and Apple are both worth trillions and make money outside of making movies and TV, so they can afford to buy up things as long as they think it can make them money in the long run.
But this might lead to fewer opportunities for weird or interesting movies, especially if the data shows not that many people are watching art films or certain genres.
Time will tell. Let us know what you think in the comments.