A24 currently occupies a "land between": no longer a scrappy indie studio challenging the establishment, not yet a merged or acquired corporate monolith scaling up to the major studio table. The studio is navigating this shift following a year of record-breaking profits driven by the success of the Gen Z horror breakout "Backrooms" and Nathan Fielder and Lance Oppenheim’s documentary "You Can See Everything."
The studio's momentum has pushed it above $500 million at the domestic box office for the first time. This growth is bolstered by a fledgling TV division producing hits such as Peacock’s "Crystal Lake," HBO’s "Neighbors," and Apple TV’s "Margot’s Got Money Troubles." Additionally, A24 may eke out bragging rights as the most nominated studio at the Oscars.
While founders David Fenkel and Daniel Katz have historically protected A24’s "cool factor" by turning down equity offers and maintaining tight creative control, one high-flying mogul says, “If they’re ever going to monetize, this is the time to do it.” The studio was valued at $3.5 billion during a mid-2024 fundraise by Josh Kushner’s Thrive Capital. However, three sources at rival companies believe this valuation is out of line with market realities. One top executive noted that brands often do not survive acquisitions, citing Disney’s treatment of FX and 20th Century Fox, and added that the studio faces pressure to grow into the valuation they chased.
To scale, A24 has begun experimenting with larger budgets and high-profile intellectual property, including a massive recent deal for the film and TV rights to "The Texas Chainsaw Massacre." The studio has just wrapped production on a $200 million adaptation of the video game "Elden Ring," starring Kit Connor and directed by Alex Garland. This represents the company's biggest swing to date.
The studio's recent financial performance has been a mix of successes and failures. While "Backrooms" became the studio's highest-grossing film ever with $400 million globally on a $10 million budget, and "You Can See Everything" earned a staggering $64 million to date, other projects struggled. Last year, $50 million projects "Eddington" and "The Smashing Machine" were rejected at the box office. Other recent misses include Glen Powell’s "How to Make a Killing" ($21 million on a $15 million budget), Hugh Jackman’s "The Death of Robin Hood" ($9.8 million on a $20 million budget), and Chris Rock’s "Misty Green" ($160,000 on a $5 million budget).
To manage these losses, A24 sells foreign rights to regional distributors rather than handling overseas rollouts itself. However, this means the studio does not get to enjoy the outsize riches when a title like "Backrooms" earns more than $200 million internationally. According to a recent Wall Street Journal story, Fenkel and Katz have been flying around the globe for the past year to look for “potential partners” to help A24 establish ports in foreign markets. The reported plan is finding local language teams with similar sensibilities as the U.S. outfit.
A24 faces a new challenge in connecting with broader audiences as it moves toward "four-quadrant" filmmaking. Travis Knox, associate professor of producing at Chapman University, noted that while A24 built its brand on "two quadrants," films with $100 million-plus budgets cannot ignore markets like Oklahoma and Indiana. Knox warned that an acquisition by a company like Amazon could "automatically alienate the audience" because A24's greatest asset is its power to bring younger audiences to platforms without the "stench of corporate greed."
