The company's name is a reference to forty acres and a mule, a section of military orders during the American Civil War which stated that certain recently emancipated black families on the Georgia coast were to be given some surplus army mules and lots of land no larger than 40 acres (160,000 m2).

[2][3][4] After the success of his films Do the Right Thing and Malcolm X, Lee expanded the company's brand by opening clothing stores featuring its merchandise.

[8] In 2004, the company moved all of its operations to New York City with headquarters on South Elliott Place in the Fort Greene neighborhood of Brooklyn.

In 2010, Lee's documentary If God Is Willing and Da Creek Don't Rise won a Peabody Award.

[9] In 2021, the company had signed a multi-year creative partnership with Netflix to develop their film and television projects.