New York Times and A24 Circle Letterboxd in Potential Deal
The social film community platform Letterboxd is closing in on a sale, a deal that could value the company at $300 million.
But first, there’s just the tricky problem of finding a buyer.
Letterboxd, a community where film fanatics discuss, review and recommend movies, has seen a slew of interest since it first came to market earlier this year. Among the companies said to be interested were Sony Pictures, Paramount, Netflix and Versant. Now The New York Times reports that A24 and the Times itself have circled the platform in recent weeks.
In many ways the Times would be the ideal home for the company, given its independence, experience with media and subscriptions, and existing cultural coverage. The Times has acquired brands like Wirecutter and The Athletic, folding them into its larger subscription offering while also offering standalone options.
Still, $300 million for a company that has (reportedly) $15 million in revenue seems steep.
A studio like A24 or Sony may have synergies of their own, but also drawbacks, given the obvious conflict of interest in a platform that dissects movies being owned by one of the studios it is supposed to examine.
Letterboxd sold a majority stake to the Canadian tech investment firm Tiny in 2023 at a $50 million valuation, and has since pushed into new areas, including a video store where users can rent hard-to-find titles.
But it is the community of film fans, including top directors, that has helped it stand out. Any deal would need to ensure that it remains intact.
Source link
