Department M acquires majority stake in Neon; Michael Schaefer named chief content officer as Neon launches TV division

Department M, the production banner launched in 2024 by AGBO veteran Mike Larocca and former New Regency president Michael Schaefer, has closed a transaction to acquire a majority stake in Neon, the companies announced Friday. Financial terms were not disclosed, but the deal is described as meaningful growth capital for the Santa Monica-based studio.

The leadership architecture

Tom Quinn remains CEO and founder of Neon. Michael Schaefer becomes Neon's chief content officer, while Mike Larocca stays at Department M and joins Neon's board of directors. Jeff Deutchman continues as president of acquisition, production and development for film. Carina Sposato, previously Department M's head of TV and an Emmy winner for producing Netflix's 'Adolescence,' joins Neon as executive vice president of television. Both Deutchman and Sposato report directly to Schaefer.

The Friedkin Group remains a significant shareholder and board member.

Longstanding backers The Friedkin Group, led by Dan Friedkin and also owners of indie financier 30West, retain their stake and board presence. The studio had previously explored a sale in 2022 to Steven Rales' Indian Paintbrush, but those talks fell apart.

Neon TV and expansion ambitions

The capital infusion allows Neon to launch Neon TV, creating a more vertically integrated mini-studio that already operates an international sales arm and holds an award-winning feature library. Andreas earlier reported buzz of a UK distribution arm in the works, modeled on Lionsgate's approach. Department M is contributing development assets and production-ready projects as part of the new structure.

The Department M pipeline

Schaefer and Larocca launched Department M in early 2024 with backing from private investors including Forta Advisors. Their credits include Steven Soderbergh's 'The Christophers,' which made $4.8 million at the box office and was picked up by Neon out of the 2025 Toronto International Film Festival, and the Hulu streaming remake of 'The Hand That Rocks the Cradle.' Upcoming projects include Cary Joji Fukunaga's Jo Nesbo adaptation 'Blood on Snow,' starring Benedict Cumberbatch, Aaron Taylor-Johnson, Eva Green and Ben Mendelsohn; a new take on 'The Count of Monte Cristo' with Rege Jean-Page; a Labubu movie; and an untitled film from director Matt Johnson starring Finn Wolfhard that Neon acquired in May.

Cannes dominance and recent slate

Neon arrived at Cannes this year with six competition titles: 'All of a Sudden,' 'Fjord,' 'Hope,' 'Paper Tiger,' 'Sheep in the Box,' and 'The Unknown.' Cristian Mungiu's 'Fjord,' starring Sebastian Stan and Renate Reinsve, won the studio's seventh consecutive Palme d'Or and also took the FIPRESCI award. Best Actress went to Virginie Efira and Tao Okamoto for 'All of a Sudden.' The studio's recent credits also include Joachim Trier's 'Sentimental Value,' Jafar Panahi's 'It Was Just An Accident,' Kleber Mendonca Filho's 'The Secret Agent,' Park Chan-wook's 'No Other Choice,' and Ugo Bienvenu's 'Arco.' The horror hit 'Longlegs' grossed nearly $130 million when it was released in 2025.

Qatar ties and international web

Both Neon and Department M entered the deal with existing partnerships in Qatar. The Qatar Film Committee holds a slate deal with Neon and a biopic production agreement with Department M. The new structure is expected to deepen those international relationships as Neon scales its television and distribution footprint.