Neon, Oscar-Winning Studio Behind ‘Anora’ and ‘Longlegs,’ Sells Stake to Department M

Department M has closed a transaction 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, the founder of Neon and an indie vet who has had stints at Radius and Magnolia, will remain CEO of the company. Michael Schaefer, a partner in Department M, will become Neon’s chief content officer, while Mike Larocca, another partner in Department M, won’t move over to Neon but will join its board.

Jeff Deutchman continues as Neon’s president of acquisition, production and development for film and Carina Sposato joins as Executive VP, Television. Both will report to Schaefer.

Variety broke the news that Department M was in talks to buy a stake in Neon in February. A consortium of private investors is believed to have backed Department M, which was financed by private investors when it launched in 2024. In a release touting the pact, Neon said The Friedkin Group, which has been a long-time backer, remains a significant shareholder and board member. The Friedkin Group is run by Dan Friedkin, who co-formed 30West and founded Imperative Entertainment. Department M said it will contribute development assets and “production ready projects.”

Neon previously explored a sale in 2022, but a deal with investor Steven Rales, the businessman behind the production company Indian Paintbrush, fell apart.

Neon’s recent credits include Joachim Trier’s “Sentimental Value”; Jafar Panahi’s “It Was Just An Accident”; Kleber Mendonça Filho’s “The Secret Agent”; and Park Chan-wook’s “No Other Choice”; and Ugo Bienvenu’s “Arco.” It has also backed the horror film “Longlegs,” a massive box office hit that grossed nearly $130 million when it was released in 2025. Neon won its seventh consecutive Palme d’Or this year with “Fjord,” a drama that stars Sebastian Stan and Renate Reinsve and is expected to be an awards season player.