The New York Times Company has entered exclusive negotiations to acquire the film-focused social network Letterboxd for about US$330 million, according to a report in The New York Times itself.
Letterboxd, an online platform for movie lovers, reported 3 million users in January 2021, a figure that grew to 28 million by April of this year. More than half its users are under 35.
Letterboxd had reportedly been seeking a new owner. According to the Times, Sony Pictures Entertainment and A24 were interested in the business, but A24 was priced out.
The negotiations with the Times Company have included the possibility that Letterboxd's co-founders could stay in charge but report to a Times Company executive. According to the NYT, Letterboxd would likely remain standalone for the foreseeable future and would integrate the Times Company's ad tech. Letterboxd offers free access, with advanced features available through a paid subscription; its projected earnings for this year are estimated at US$15 million, about 4.5 per cent of what the Times is reportedly offering to pay for the company.
A New York Times spokesperson, Charlie Stadtlander, declined to comment on the acquisition. Letterboxd and its parent company, Tiny Ltd., did not immediately respond to a request for comment.
If the Times Company acquires Letterboxd, it would follow other major purchases, including Wordle, Wirecutter and The Athletic, which was bought for US$550 million.
Analysis
Why This Matters
- The New York Times is betting on dedicated online communities around film as a driver for subscription and advertising growth.
- The valuation reflects the premium market for engaged, young user bases on specialized social platforms.
- The acquisition raises questions about how Letterboxd's community culture will evolve under a major media corporation.
Background
The New York Times Company has explicitly aimed to diversify its revenue beyond news subscriptions by building a portfolio of lifestyle and sports brands, including The Athletic. Letterboxd has grown into the dominant social network for film discussion, particularly popular with younger audiences.
What to Watch
- Whether the deal faces regulatory scrutiny or competing interest from other bidders.
- How the Times balances its promise of Letterboxd remaining standalone with its commercial integration plans.
- The timeline for integrating advertising technology and any changes to Letterboxd's paid subscription features.
Checked
12 claims in this story checked against 2 sources: 11 supported.
Show each claim
- SupportedThe New York Times Company has entered exclusive negotiations to acquire Letterboxd for about US$330 million, according to a report in The New York Times.TechCrunch: “The New York Times Company has reportedly “entered exclusive negotiations” to acquire Letterboxd for $330 million, according to a report from the New York Times itself.”
- SupportedLetterboxd could join the Times portfolio alongside Wordle, Wirecutter and The Athletic if the acquisition goes ahead.The Verge: “If the NYT does acquire Letterboxd, it would follow other major purchases like Wordle (in a deal in “the low seven figures”), Wirecutter (“slightly more than $30 million”), and The Athletic ($550 million).”
- SupportedLetterboxd reported 3 million users in January 2021, rising to 28 million by April of that year in the source’s timeframe.TechCrunch: “Letterboxd reported 3 million users in January 2021, a figure that grew to 28 million by April of this year.”
- SupportedMore than half of Letterboxd’s users are under 35.TechCrunch: “More than half of its users are under 35.”
- SupportedSony Pictures Entertainment and A24 were interested in buying Letterboxd.The Verge: “The Times Company, Sony Pictures Entertainment, and A24 were all recently rumored to be among those interested in buying Letterboxd.”
- SupportedA24 was priced out of the acquisition.TechCrunch: “According to the Times, film studios A24 and Sony were interested in the acquisition, but A24 was priced out.”
- SupportedLetterboxd’s co-founders could stay in charge but report to a Times Company executive.The Verge: “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.”
- SupportedLetterboxd would likely remain standalone for the foreseeable future.The Verge: “Letterboxd would likely remain standalone for the “foreseeable future,” according to the NYT.”
- SupportedLetterboxd would integrate the Times Company’s ad tech.The Verge: “The company would also integrate the Times Company’s ad tech.”
- SupportedLetterboxd’s projected earnings for this year are estimated at US$15 million, about 4.5 per cent of the reported offer price.TechCrunch: “Its projected earnings for this year are estimated at $15 million, which is only about 4.5% of what the Times is supposedly offering to buy the company for.”
- SupportedNew York Times spokesperson Charlie Stadtlander declined to comment on the acquisition.The Verge: “NYT spokesperson Charlie Stadtlander declined to comment.”
- Partly supportedLetterboxd and Tiny Ltd. did not immediately respond to a request for comment.The Verge: “Letterboxd and current parent company Tiny Ltd. didn’t immediately reply to a request for comment from The Verge.”
