Who Is Department M, the Company in Talks to Acquire a Stake in Neon?

Neon is in talks to sell a significant stake in its company to Department M, a production company founded two years ago, IndieWire has learned and as first reported by Variety.

It’s unclear the size of the stake Department M would be acquiring, but it is being backed by a consortium of private investors. Neon declined to comment and Department M did not respond to a request for comment.

But while you’ve definitely heard of Neon, Department M is a new name on the radar. The company was founded in 2024 and is led by Mike Larocca and Michael Schaefer. Larocca was the president and co-founder of Agbo, which is the production banner fronted by “Avengers” directors the Russo Brothers, and Schaefer is the former president of New Regency. Larocca oversaw projects like “Extraction,” “The Gray Man,” and the series “Citadel” while at Agbo, and Schaefer was at the…