The New York Times Company has entered exclusive negotiations for a $330 million Letterboxd acquisition, valuing the film-tracking social network at roughly 22 times its annual revenue. The publisher emerged as the lead prospective buyer after rival bidder A24 was priced out and Sony Pictures Entertainment expressed interest.
Key points
- The New York Times Company is in exclusive talks to purchase film platform Letterboxd for approximately $330 million (£255 million).
- Letterboxd generates an estimated $15 million in annual revenue, making the proposed deal equivalent to a 22-times valuation multiple.
- Film studios Sony Pictures Entertainment and A24 also pursued the site, but A24 was priced out during late-stage bidding.
- Founders Matthew Buchanan and Karl von Randow are expected to remain in charge, with the platform running as a standalone service.
Inside the $330m valuation
The New York Times reported on Thursday that its parent company is weighing an acquisition of Letterboxd that could reach $330 million. The platform projects roughly $15 million in revenue for this year, meaning the mooted purchase price represents a revenue multiple of around 22 times.
That multiple reflects rapid membership growth rather than current profits. Letterboxd expanded from 3 million registered members in January 2021 to 28 million by April this year, with more than half of its audience under the age of 35. The community gained wider commercial attention after featuring on Time’s ranking of influential companies.
The service is free to use for logging and reviewing films, but charges members for optional subscription tiers that provide detailed viewing statistics and profile customisation. Business magazine Inc reported that the total user base has reached up to 30 million accounts, though Letterboxd does not disclose how many users pay for subscriptions.
How the bidding unfolded
Letterboxd is owned by parent company Tiny Ltd., which has been exploring a sale of the platform. The auction attracted interest from traditional entertainment groups as well as digital media companies.
Independent production house A24 and Hollywood studio Sony Pictures Entertainment both held discussions to purchase the network. Industry publication IndieWire reported that A24 took part in late-stage negotiations that included keeping the founders in post, but the studio was priced out as the valuation increased.
Studio ownership had raised concerns among users about editorial independence. Placing film production studios in charge of an amateur film review network threatened to create commercial conflicts of interest, giving an independent publisher a clearer path to a deal.
Why the Times wants a film network
The New York Times Company is trying to increase its digital subscriber base from 13.8 million to 15 million by the end of 2027. To meet that goal, the company has repeatedly bought specialised digital communities and subscription services outside hard news.
The publisher bought sports website The Athletic for $550 million, product review service Wirecutter for slightly more than $30 million, and word puzzle Wordle for a low seven-figure sum. It also turned its cooking section into a standalone culinary subscription app.
Two people familiar with the matter said the Times Company intends to link its advertising technology to Letterboxd while retaining the site as a standalone brand. Digital publishers are moving quickly to consolidate advertising infrastructure, similar to when Affle agreed a $420m deal for Perion Network. Elevated multiples remain common in targeted digital deals, as seen when Palo Alto Networks entered $500m talks for Clutch Security.
What happens next for users
Under the structure under discussion, co-founders Matthew Buchanan and Karl von Randow would continue running Letterboxd, reporting to an executive at the New York Times Company.
Sources told the paper that Letterboxd would operate as a standalone destination for the “foreseeable future”. The paper has not outlined plans to bundle Letterboxd memberships into its broader all-access digital subscription, though product crossovers remain an option.
A spokesperson for the New York Times Company, Charlie Stadtlander, declined to comment. Letterboxd and parent company Tiny Ltd. did not respond to requests for comment. A final agreement has not yet been signed, and terms could change before the transaction closes.
