Department M, the production company founded two years ago by Mike Larocca and Michael Schaefer, is in talks to acquire a significant stake in Neon, the Oscar-winning studio behind “Parasite” and “Anora.”
A consortium of private investors is supporting Ministry M in this effort, two people familiar with the negotiations said. Department M was founded in 2024 with funding from private investors.
Neon had previously considered a sale in 2022, but a deal with investor Steven Lares, the businessman behind production company Indian Paintbrush, fell through.
Neon’s recent credits include Joachim Trier’s “Sentimental Value.” Jafar Panahi’s Palme d’Or winning film “It Was Just An Accident”. “The Secret Agent” by Kleber Mendonça Filho. “Sirât” by Oliver Lacks. “No Other Choice” directed by Park Chan-wook. and “Arco” by Hugo Bienvenue. It is also supporting the blockbuster horror film “Long Legs,” which grossed nearly $130 million when released in 2025.
“Parasite” and “Anora” both won Academy Awards for Best Picture and helped cement Neon’s status as one of the most popular brands in independent filmmaking. The company was founded in 2017 by Tom Quinn, who previously oversaw Radius and was also an executive at Magnolia.
Department M’s slate of films includes Joe Nesbaugh’s Blood on Snow, starring Aaron Taylor-Johnson and Benedict Cumberbatch and directed by Emmy Award winner Cary Joji Fukunaga, and writer/director Michel Garza Cervera’s remake of The Hand That Rocks the Cradle. Mr. Schaefer is a former president of New Regency, and Larocca co-founded AGBO with brothers Joe and Anthony Russo, creators of “Avengers: Endgame.”
M Department declined to comment. A Neon spokesperson did not respond to a request for comment.
