Department M has completed a deal to acquire a significant stake in Neon, the Oscar-winning indie studio behind “Parasite” and “Anora.” Financial terms of the deal were not disclosed.
Tom Quinn, Neon’s founder and indie veteran who previously worked at Radius and Magnolia, will remain the company’s CEO. Michael Schaefer, a partner in the M division, will become Neon’s chief content officer, while Mike Larocca, another partner in the M division, will remain with Neon but will join the company’s board of directors.
Jeff Deutchman will continue as Neon’s President of Film Acquisitions, Production and Development, and Carina Spasato will join as Executive VP of Television. Both will report to Schaefer.
Variety broke the news in February that Department M was in talks to acquire a stake in Neon. A consortium of private investors is believed to have backed Department M, which was funded by private investors when it launched in 2024. In a release promoting the agreement, Mr. Neon said long-time supporter Friedkin Group remains a significant shareholder and director. The Friedkin Group is run by Dan Friedkin, who co-founded 30West and founded Imperative Entertainment. The M division will contribute development assets and “production-ready projects,” he said.
Neon had previously sought a sale in 2022, but a deal with production company Indian Paintbrush’s businessman and investor Stephen Lares fell through.
Neon’s recent credits include Joachim Trier’s “Sentimental Value.” “It was just an accident” by Jafar Panahi. “The Secret Agent” by Kleber Mendonça Filho. And Park Chan-wook’s “No Other Choice.” and “Arco” by Hugo Bienvenue. The company also supported the blockbuster horror film “Long Legs,” which grossed nearly $130 million when released in 2025. Neon won its seventh consecutive Palme d’Or this year for the drama Fjord, starring Sebastian Stan and Renate Rijnsve, and is expected to be a mainstay of awards season.
