Letterboxd might soon be sold off.
Major companies are eyeing the sale.
They include Netflix, Sony, Paramount in what might manifest troubling clashes between audiences and producers.
Letterboxd might be staring at a new owner. Netflix, Sony Pictures, Paramount, private equity company TPG and Reddit co-founder Alexis Ohanian are all in the running to buy it, according to Puck. A Semafor report from earlier this year indicated Fandango and Rotten Tomatoes owner Versant was interested too. The app is majority-owned by the Canadian holding company Tiny, which swooped in for a 60% share in the business in 2023. Co-founders Matthew Buchanan and Karl von Randow own the remaining 40%.
Letterboxd's Surging Popularity
The sales process is reportedly being handled by investment bank LionTree, which has been seeking a valuation of around USD 250 million for the company, according to the Puck report. The social network has witnessed growth over the last few years after blooming in popularity during COVID-19 lockdowns. According to Deadline, Letterboxd had 6.5 million members as of August 2022. That figure has since reportedly spiked to 30 million, with 10 million people joining last year alone. It's a staggering rise, one thar shows no signs of slowing down. The app had launched in 2011 but the pandemic was the time when it saw a major renaissance. Letterboxd’s popular Four Favorites video series often sees Hollywood A-listers such as Kate Winslet, Dustin Hoffman and Uma Thurman discussing their most-loved movies.
This interest has flagged possible concerns about potential conflicts of interest if a major studio or streaming platform were to acquire the film review and discovery platform. Rotten Tomatoes faced similar scrutiny when it was under NBCUniversal's aegis. While Warner Bros. Discovery (which Paramount may soon own) still holds a minority stake in Rotten Tomatoes, NBCU owner Comcast spun out the website along with its cable networks earlier this year. “As Letterboxd has grown, it’s natural there will be interest in what we do next. There’s nothing specific for us to share at this time. Any decision about Letterboxd’s future would involve the founders,” Variety quoted a spokesperson from Letterboxd.
