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NYT Company in Talks to Buy Letterboxd for $330M

Updated 6:42 PM ET · 8:04 PM ETConfirmedShare via:          

Entertainment Desk

In Short: The New York Times Company is in advanced talks to acquire the film review platform Letterboxd for roughly $330 million, according to reports from Arab News PK and other outlets.

No agreement has been reached yet, and the talks could still fall apart, the report said.

The deal would value Letterboxd at more than 20 times its projected earnings this year of about $15 million, according to the newspaper.

Letterboxd, launched in 2011 by Matthew Buchanan and Karl von Randow, has grown rapidly since 2020, reaching 30 million users and is particularly popular among Gen Z film fans.

The New York Times Company would integrate its advertising technology with Letterboxd’s systems, and the film platform would likely continue operating as a standalone site for the foreseeable future.

The Times Company and Letterboxd have discussed keeping Buchanan and von Randow in charge of the business, with the founders reporting to a Times Company executive.

Two new surprising entities, Sony Pictures and A24, have entered the bidding war for the Letterboxd sale, according to Comingsoon.

Letterboxd is majority-owned by Canadian holding company Tiny, which acquired a 60% stake in 2023 in a deal valuing the platform at $50 million to $60 million.

The New York Times Company has entered exclusive negotiations to acquire the independently-owned movie-focused social platform Letterboxd for roughly $330 million, according to reports.

The proposed price represents roughly 22 times Letterboxd’s projected 2026 earnings before interest, taxes, depreciation, and amortization of $15 million, according to the Times, citing two people familiar with the discussions.

The New York Times Company declined to comment, while Letterboxd did not immediately respond to a request for comment outside regular business hours.

What this adds

Background

What's confirmed

• No agreement has been ​reached ‌and ⁠the ​talks could ⁠still fall apart, the report said.
• The price under consideration would value Letterboxd at more than 20 times its projected earnings this year of about $15 million, according to the newspaper.
• The New York Times Company declined to comment, while Letterboxd did not immediately respond ⁠to a request for comment outside regular business ‌hours.
• The New York Times Company would integrate its advertising technology with Letterboxd’s systems, according to the report, which added that the film platform ​would likely continue operating as ​a standalone site for the foreseeable future.
• Breaking news from The New York Times : The New York Times “has entered exclusive negotiations” to acquire the independently-owned movie-focused social platform Letterboxd for roughly $330 million.
• The New York Times Company is in talks”exclusive negotations” to acquire Letterboxd, the social network for film lovers, for around $330 million, The New York Times reports.

What's still developing

• No way its all going behind a paywall, counterintuitive.
• The Times noted that Letterboxd’s appeal includes a highly active user base that regularly participates in film-themed challenges, celebrity users like Francis Ford Coppola and Rian Johnson, a $19-$49 per year subscription model, and preexisting advertiser draw.
• Letterboxd has grown significantly since being acquired by Tiny, now reaching 26 million users (though the company does not disclose how many of them are on paid subscriptions.) Its Four Favorites social media segments have proven reliable viral hits.
• Letterboxd reported 3 million users in January 2021, a figure that grew to 28 million by April of this year.
• The Times Company, Sony Pictures Entertainment, and A24 were all recently rumored to be among those interested in buying Letterboxd.
• Last year, Letterboxd also launched an online film-rental platform that is available in 23 countries.
• Join the conversation with HtN on our Letterboxd Page.
• It’s officially the end of an era for Letterboxd, as the bidding war for the review-aggregator site has started, with several major companies interested in acquiring it.
• Taking ownership of Letterboxd is majorly addressed to its large audience, advertising potential, and the revenue that the company can generate for its owner.
• For that as well as many other reasons, the deal could potentially fall apart.
• Letterboxd launched in 2011 and has a user base of about 30 million who review and recommend films, build lists and take on challenges such as “Horror x 52”.

Sources

• Arab News PKlink
• Comingsoonlink
• Consequence of Soundlink
• Deadlinelink
• Gizmodolink
• IndieWirelink
• Nerdistlink
• NewsCordlink
• TechCrunchlink
• The Vergelink
• Thewraplink
• Varietylink
• Hammertonaillink
• Theplaylistlink
• Fandomwirelink
• WarpBeat — background on New York Times in Talks to Acquire Letterboxd for $330 Million link
• The Glaneur — video link