A24 has just finished production on its adaptation of “Elden Ring,” a fantasy action film starring Kit Connor and directed by Alex Garland. With a reported $200 million budget, it is the company’s biggest production to date—and a striking sign of how far the studio has moved beyond its low-budget roots.

The expansion comes during what is described as A24’s most profitable year. The studio has surpassed $500 million at the domestic box office for the first time, led by hits including “Backrooms,” which has earned $400 million worldwide against a $10 million budget, and “The Drama,” starring Zendaya and Robert Pattinson, which has grossed $134 million globally. “You Can See Everything” has taken in $64 million to date.

A24’s television division is also gaining traction, with projects including Peacock’s “Crystal Lake,” HBO’s “Neighbors” and Apple TV’s “Margot’s Got Money Troubles.” The studio may also become the most-nominated company at the Oscars, according to the report.

The success has renewed a long-running question about A24’s future: whether its founders, David Fenkel and Daniel Katz, will keep growing the company independently or consider a sale or outside investment. The pair have previously entertained interest from companies including Apple and Sony, but no deal has emerged. Sources say they have rejected recent equity offers and retained tight control over the company’s creative direction.

A24 was valued at $3.5 billion in a 2024 fundraising round led by Josh Kushner’s Thrive Capital. Three executives at competing companies described that valuation as out of step with market realities, while one argued that the studio’s earnings must continue growing to justify it. A sale could bring a substantial return, but executives and industry observers also warn that a buyer might weaken the distinctive brand that has helped attract younger audiences.

The studio’s push into larger productions has had mixed results. Films including Ari Aster’s “Eddington” and Dwayne Johnson’s “The Smashing Machine,” each made for $50 million, underperformed at the box office last year. This year’s hits have been offset by weaker releases such as “How to Make a Killing,” “The Death of Robin Hood” and “Misty Green.” A24 also sells foreign distribution rights to regional companies, limiting its share of international success while helping it recover costs on films that struggle.

The company is exploring ways to expand overseas. The Wall Street Journal has reported that Fenkel and Katz have spent the past year seeking potential partners to establish operations in foreign markets, with local-language teams as a possible approach. A24 has also made a major deal for film and television rights to “The Texas Chainsaw Massacre.”

Scaling up presents a creative challenge as well as a financial one. A24’s appeal has partly come from films that are distinctive and sometimes divisive, rather than designed for the broadest possible audience. But industry observers say projects with budgets above $100 million need to reach more viewers across the country. The stakes are particularly high for “Elden Ring” and the planned $35 million slasher “Slayground.”

Sources: Variety.