New York Times in advanced talks to buy film platform Letterboxd for US$330m

The New York Times Company is in exclusive, advanced talks to acquire the popular film review and social platform Letterboxd for roughly US$330 million. Aucklanders Matthew Buchanan and Karl von Randow founded the site in 2011, and they currently retain a 40 percent stake split evenly between them.

Deal History

Other potential buyers were pushed out as the price climbed during negotiations. In September, the Times reported it was one of three companies in talks with Letterboxd, alongside Sony Pictures and A24. Netflix also circled the platform earlier this year when the reported valuation sat at US$250 million, before rising to US$300 million in September and finally reaching US$330 million.

Platform Stats

Letterboxd currently boasts 30 million highly engaged film buffs across free and paid premium plans, generating around US$15 million in earnings. The company employs 40 people across New Zealand, the United States, Canada, and the United Kingdom. Canadian entrepreneur Andrew Wilkinson previously bought a 60 percent stake in the company in 2023 through his holding firm Tiny, paying Buchanan and von Randow roughly US$15 million each.

Context

The New York Times Company has pursued a consistent strategy of boosting its paid digital subscriptions through major acquisitions, previously buying consumer guide Wirecutter in 2016, sports media site The Athletic in 2022 for US$550 million, and the word game Wordle for an undisclosed sum. Letterboxd itself grew rapidly during Covid-19 lockdowns and viral celebrity video features, marking the third major commercial tech success for its founders following their ventures Cactuslab and Verifi Identity Services.