Neon Raises $200 Million to Boost Production and Expand to New Markets

This year alone, Neon released one of the biggest box office hits in its history with “Longlegs” and had a fifth-straight winner of the Palme d’Or at Cannes with “Anora.” With more exciting projects in the works — like “They Follow,” the sequel to one of their earliest hits “It Follows” — even bigger and better things may be on the horizon. All of that costs money.

On Monday, Neon announced it has closed a $200 million-plus credit facility as led by Comerica Bank (it previously had another from Comerica in 2022). Tom Quinn’s distributor will use that investment to bolster its film acquisition (Palme d’Or winners don’t come cheap!) and development, production, and distribution. That is likely to include new markets.

Another upcoming film to look out for from Neon includes “I Love Boosters” from Boots Riley and starring Keke Palmer, Naomi Ackie, LaKeith Stanfield, Demi Moore, Eiza González, Poppy Liu, Taylour Paige, and Will Poulter.

More funds could lead to bigger budgets and more ambitious, commercial projects — not unlike how its chief rival, A24, has looked to expand. A24 secured its own new investment round, estimated to be worth roughly $250 million, just this summer. That fundraising followed the release of A24’s priciest project to date: “Civil War.” Now A24 is working on table-tennis movie “Marty Supreme” with Timothée Chalamet, another film that will rank among its biggest-ever budgets.

(If Neon really wants to keep up with A24, perhaps it should consider selling branded chocolate bars.)

Derek Riedel, SVP of Comerica Bank’s entertainment group, led the transaction on the money side. Neon CFO Ryan Friscia was on the other end of the bargaining table.

“Comerica believes in the vision of Neon and couldn’t be more thrilled to support their continued growth,” Riedel said in a statement. “Their ability to identify and curate film, while finding innovative ways to connect audiences with cinema, is unmatched. Supporting Neon and the independent film landscape is a core pillar of our business and we are excited about the future.”

Upcoming on Neon’s slate is “The Seed of the Sacred Fig” opening November 27, Josh Oppenheimer’s “The End” on December 6, and Asif Kapadia’s documentary “2073” on December 27. It’s also in the works on “They Follow” and Michael Covino’s “Splitsville.”