Neon, the independent film studio recognized for producing Academy Award-winning films like “Parasite” and “Anora,” is reportedly in discussions to sell a significant stake to Department M, a production company established in 2024 by Mike Larocca and Michael Schaefer. This move is supported by a group of private investors backing Department M in the current negotiations. When Department M was launched two years ago, it was financed by private investors, further strengthening its position in the industry. Previously, Neon explored a potential sale in 2022, engaging with investor Steven Rales, known for backing Indian Paintbrush, but the proposed agreement did not come to fruition. Founded in 2017 by Tom Quinn, who has a history of managing notable independent film operations at Radius and Magnolia, Neon has built a substantial reputation as a powerhouse in indie filmmaking. Its recent productions include Joachim Trier’s “Sentimental Value,” Jafar Panahi’s Palme d’Or winner “It Was Just An Accident,” Kleber Mendonça Filho’s “The Secret Agent,” Oliver Laxe’s “Sirât,” Park Chan-wook’s “No Other Choice,” and Ugo Bienvenu’s “Arco.” Neon also backed the horror film “Longlegs,” released in 2025, which achieved nearly $130 million at the box office. The studio’s distinction is bolstered by its two Best Picture Oscar wins for “Parasite” and “Anora,” solidifying its status in the global film landscape. Meanwhile, Department M’s upcoming projects include “Blood on Snow,” an adaptation of Jo Nesbø’s work starring Aaron Taylor-Johnson and Benedict Cumberbatch and set to be directed by Emmy winner Cary Joji Fukunaga, as well as a remake of “The Hand That Rocks the Cradle” written and directed by Michelle Garza Cervera. Representatives for both Neon and Department M have not provided comments regarding the talks. This potential sale marks a significant development for Neon as it continues to expand its influence with a portfolio of critically acclaimed and commercially successful films.