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The New York Times Company in Advanced Talks to Acquire Letterboxd for $330 Million
Confirmed
In Short: The New York Times Company is in advanced talks to acquire the cinephile social networking platform Letterboxd for $330 million, more than 20 times its projected earnings in 2026.
The New York Times Company is in advanced talks to acquire Letterboxd, a social networking platform for cinephiles, for $330 million, according to a report from the Times on Thursday. The deal would value the website at a significant premium, more than 20 times its projected earnings in 2026 of about $15 million.
Letterboxd has grown rapidly since its acquisition by Tiny, reaching 26 million users, though the company does not disclose how many are on paid subscriptions. The platform's Four Favorites social media segments have become reliable viral hits, attracting young celebrities who have become semi-active users.
The New York Times Company emerged victorious over Sony Pictures Entertainment and A24, which had also been in late-stage talks to acquire Letterboxd. A24 had promised to maintain the platform's independence and business model unchanged, but the Times prevailed with a reported $330 million offer.
Founded in 2011, Letterboxd allows users to rate and review movies, track their viewing habits, and share recommendations. The platform's core features are free to users, but it offers a paid Pro tier for $19 a year that removes ads and provides more personalization features.
The Times reported that it has discussed keeping founders Matthew Buchanan and Karl von Randow in place, with each reporting to a Times executive. The deal is not yet final, and the company would likely remain standalone for the “foreseeable future,” according to the Times.
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, and a $19-$49 per year subscription model. The platform's large audience and advertising potential make it an attractive acquisition target.
In July, a Letterboxd spokesperson said there was nothing specific to share about the company's future, noting that any decision would involve the founders. The platform reportedly has more than 30 million members globally, a figure that grew from 3 million users in January 2021 to 28 million by April of this year.
What this adds
The New York Times Company's reported $330 million offer is more than 20 times Letterboxd’s projected earnings in 2026 of about $15 million, according to the Times.
Letterboxd reported 3 million users in January 2021, a figure that grew to 28 million by April of this year, according to TechCrunch.
The negotiations with the Times Company have included the potential for Letterboxd’s co-founders to stay in charge but report to a Times Company executive, according to The Verge.
That’s notable, considering how Letterboxd reportedly has more than 30 million members globally, according to Comingsoon.
Background
DoorDash is in advanced talks to acquire Instacart in a deal that could value the company at roughly $17 billion.
What's confirmed
- The $330 million price tag is more than 20 times Letterboxd’s projected earnings in 2026 of about $15 million, the Times reported.
- The New York Times Company has reportedly “entered exclusive negotiations” to acquire Letterboxd for $330 million.
What's still developing
- The New York Times prevailed over finalists Sony Pictures Entertainment, which has been on a buying spree with trendy outlets for cinephiles like Alamo Drafthouse Cinemas and Cosm, and A24, which for years has been one of the few companies to rival the cultural cache among young film lovers that Letterboxd commands (it helps that Charli XCX is a fan of both).
- The negotiations, reported Thursday by the Times, follow months of competition for the film-review platform.
- 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.
- Per The New York Times, a number of suitors have already submitted interest in the acquisition of the website.
- Letterboxd, the app where film Twitter went to live, could soon have a new owner.