New York Times in Exclusive Talks to Acquire Letterboxd for About $330 Million

The Deal

The New York Times Company is in exclusive negotiations to acquire Letterboxd, the online movie community, for about $330 million, the Times reported Thursday. The New York Times said the deal was not yet final, and no agreement has been reached, with negotiations potentially still falling apart.

The proposed price represents roughly 22 times Letterboxd’s projected 2026 earnings before interest, taxes, depreciation and amortization of $15 million, according to the Times, citing two people familiar with the discussions.

Letterboxd and Its Ownership

Founded in 2011, Letterboxd allows users to rate and review movies, track their viewing habits and share recommendations. Its membership surpassed 30.7 million at the end of the second quarter, up 43% from a year earlier, and was approaching 35 million by October, according to TheWrap’s previous reporting.

Letterboxd is majority-owned by Canadian holding company Tiny, which acquired a 60% stake in 2023 in a deal valuing the platform at $50 million to $60 million. Co-founders Matthew Buchanan and Karl von Randow retain the remaining 40%.

Under the proposed deal, co-founders Matthew Buchanan and Karl von Randow would remain in charge, with Letterboxd expected to operate as a standalone platform while using the Times’ advertising technology, according to the report.

Bidding Process and Strategic Context

The sale process was overseen by investment bank LionTree and attracted interest from A24, Sony, Netflix and an investor group led by Madison Wells CEO Gigi Pritzker, among others. Variety reported in September that the New York Times and A24 were among the bidders, with Netflix, Sony Pictures Entertainment, Skydance, private-equity giant TPG and Reddit co-creator Alexis Ohanian also expressing interest.

The acquisition would build on the publisher’s strategy of expanding its subscription and advertising businesses through purchases including The Athletic, Wirecutter and Wordle. For the Times, Letterboxd would add an established digital audience as the publisher works toward its goal of 15 million subscribers by the end of 2027.

The New York Times had no comment.

Why it matters

The deal would expand the New York Times Company’s digital portfolio beyond news into a film-focused social platform. It would also add an established digital audience as the publisher pursues its subscriber and advertising growth goals.

Sources

• variety.com: New York Times in Exclusive Negotiations to Acquire Letterboxd
• thewrap.com: New York Times Enters Exclusive Talks to Buy Letterboxd for $330 Million - TheWrap
• uk.finance.yahoo.com: New York Times Enters Exclusive Talks to Buy Letterboxd for $330 Million

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.