Yellowstone Backers Wanted to Cash Out—Then the Streaming Bubble Burst

Tom Quinn thought he had a deal. The chief executive officer of Neon, the distributor behind such films as Parasite and I, Tonya, last year agreed to sell the company for more than $100 million to Steven Rales, the billionaire industrialist and backer of director Wes Anderson. But Rales got spooked by the shaky economy and pulled out at the last minute, according to a person familiar with the matter.

A slowdown in spending by streaming services, higher interest rates and a tough regulatory climate have cratered the once-hot market for independent film and TV studios. Although deals could still come together, at least a half-dozen other companies have explored—and thus far failed to close—sales, including J.J. Abrams’s Bad Robot, British visual effects maker Cinesite and kids’ media company PocketWatch Inc., according to people familiar with those situations who, like others cited in this story, asked not to be identified discussing private negotiations. The companies all declined to comment. Neon’s Quinn also declined to comment, and Rales didn’t respond to emails and calls.