New York Times Company advances Letterboxd acquisition talks

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NYT advances Letterboxd acquisition

Highlights

The New York Times Company is in advanced talks to acquire Letterboxd at over 20 times its projected 2024 earnings of about $15 million, though no agreement is finalized.
Letterboxd's parent company, advised by LionTree, saw interest from A24 and Sony before A24 exited due to rising price expectations.
The deal aligns with The New York Times Company's strategy to diversify beyond core news, following acquisitions like The Athletic, as its total paid subscribers reached 13.8 million in Q3.

Deal talks and valuation framework

As first reported by Reuters, citing The New York Times, the companies are discussing a transaction that would value Letterboxd at more than 20 times its projected earnings this year of about $15 million. No agreement has been reached, and the talks could still collapse.

The New York Times Company declined to comment, while Letterboxd did not immediately respond to a request for comment outside regular business hours. The report says Letterboxd's parent has been working with investment bank LionTree on a potential sale, and that film studios A24 and Sony were among prospective buyers before A24 dropped out as price expectations rose.

Letterboxd, launched in 2011 by Matthew Buchanan and Karl von Randow, has expanded quickly since 2020 and now reaches 30 million users. The report says the founders could remain in charge of the business, reporting to a New York Times Company executive if a deal is completed.

Digital strategy and audience impact

The acquisition would extend the company's strategy of adding businesses beyond its flagship news operation, following previous deals for The Athletic, Wirecutter and the Wordle game. In the third quarter, the company added 420,000 digital-only subscribers, bringing its total paid subscriber base to 13.8 million.

Letterboxd has built a strong following among Gen Z film fans, a group that is more likely than other generations to visit cinemas, according to Statista. The report says The New York Times Company would integrate its advertising technology with Letterboxd's systems while likely keeping the platform operating as a standalone site for the foreseeable future.

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