A24, the Oscar-winning indie studio that has become an edgy brand name unto itself, is getting a big vote of confidence — and an influx of cash.
The studio said Wednesday it has closed on an investment round led by Joshua Kushner’s Thrive Capital. The Hollywood Reporter has learned that Thrive invested $75 million into the indie studio based on a $3.25 billion pre-money valuation. A source close to A24 with knowledge of the investment notes that the company’s enterprise valuation now sits at $3.5 billion, suggesting this round of funding will net the company a roughly $250 million total investment.
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As a part of the investment, Thrive founder Kushner will join the A24 board of directors.
The news of the A24’s new valuation and Thrive’s investment comes as the studio pushed into more commercial projects, with bigger budgets and A-list talent. There was a period, not too long ago, when the Hollywood rumor mill was convinced A24 was on the precipice of being sold. Depending on the week, it was to Apple or to Amazon. Then, in early 2022, the company announced it had done a round of financing instead — $225 million, at a valuation of $2.5 billion. Existing investors are said to have contributed to the most recent round as well.
A24 has long been synonymous with a filmmaker-first approach that has earned it many fans in a contemporary Hollywood that has only grown increasingly risk-averse. Early acquisitions included Alex Garland’s Ex Machina, Harmony Korine’s Spring Breakers and Barry Jenkins’ Moonlight, the latter of which netted A24 its first Oscar-winning title.
As it became known for breaking new directing talent like Ari Aster (Midsommar and Hereditary) and Robert Eggers (The Witch, The Lighthouse), A24 pushed more into production with films like Zola, the X films and the best picture winning Everything Everywhere All at Once. On the television front, A24 found success producing HBO hit Euphoria (albeit A24 only takes a fee on the production) and has expanded its slate to include Netflix Emmy winner Beef and beloved Showtime series The Curse.
All of this led to the studio’s current “cool kid” status, bolstered by its ubiquitous merch that sees the A24 logo emblazoned on sweatshirts and hats worn by moviegoers. A24 has become a household name with intentionality, with the studio having long sold coffee table books, candles and other movie-inspired paraphernalia. (Earlier this year, A24 struck a deal with London-based independent publisher Mack that will see the A24 books sold in stores, a step up from its direct-to-consumer model.)
As for the box office, A24 isn’t known for massive windfalls. The movies that it traditionally releases — passion projects from first-time and auteur filmmakers, festival acquisitions and the occasional genre hit — have tight margins. While some films proved successful, there have been misses (recently, Aster’s Beau Is Afraid) and still other, smaller titles get little to no theatrical play at all.
Still, by 2022, when the studio raised its first massive round of funding since its founding, it became clear that A24 was primed for growth.
As of late, A24 executives have been asking around for the “A24 version” of commercial titles that range from John Wick to Suits, according to several sources. “What’s an A24 version of The Hills or Laguna Beach, which I truly loved just from an audience perspective? We could crush something like that,” A24 TV head Ravi Nandan told Bloomberg earlier this year.
The asks have left some in the industry, including A24’s longtime partners, confused, unsure what to make of the push into more commercial work for a company that built its brand on out-of-the-box filmmaking.
At the box office, A24 has found commercial success with genre films such as Aster’s and the horror feature Talk to Me, which was acquired out of the 2023 Sundance Film Festival and fast-tracked for a sequel by the studio. But a push into an era of making more content has not been without bumps. The A24-produced HBO series The Idol was plagued with production issues, while a third season of Euphoria has remained stubbornly out of reach.
The studio recently released its most ambitious project to date with Alex Garland’s actioner Civil War. The studio placed the budget at $50 million but several sources have pegged the budget closer to $70 million. The film grossed $68 million at the domestic box office to date and over $120 million internationally. (By comparison, Everything Everywhere grossed over $70 million domestically and was produced for roughly $14 million budget.)
The studio’s upcoming slate includes the Benny Safdie and Dwayne Johnson MMA biopic The Smashing Machine, the Adam Wingard action-thriller Onslaught and a project that will pair the studio with Steven Spielberg’s Amblin Entertainment.
Outside of investments like Thrive’s, A24 has bolstered its production efforts with moneyed output deals, including the one signed at the end of 2023 that will see A24 theatrical movies air exclusively on HBO and stream only on Max. Other deals include an exclusive airline distribution deal with Anuvu and Happinet Phantom Studios covering the distribution in Japan.
Thrive was launched by Kushner in 2009 to invest primarily in Internet, software and tech companies. Its investments have included Instagram, Spotify, Slack, Patreon, Stripe and Fanatics, and it currently has about $14 billion in assets under management. In 2022, after he left but before he returned to the company as CEO, Disney’s Bob Iger joined the firm as a partner. A few months later, after he returned to Disney, Iger acquired a stake in Thrive — along with other partners — that was previously owned by Goldman Sachs.
Kushner is the son of real estate developer Charles Kushner and the younger brother of former Trump White House adviser Jared Kushner. He is also married to model and entrepreneur Karlie Kloss.
Said A24 in a statement about today’s news: “We’re thrilled to be working with Thrive Capital whose unique expertise will be invaluable in our growth. With Thrive, alongside our existing partners, we look forward to growing our support of groundbreaking storytellers and helping their voices reach audiences around the world.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
