New York Times Company in advanced talks to acquire Letterboxd for $330 million

The New York Times Company is in advanced, exclusive negotiations to acquire Letterboxd, the popular social media platform for film enthusiasts, for a reported sum of $330 million. The deal, which would see the platform transferred from Canadian hedge fund Tiny, is currently the leading contender in a competitive sale process. According to reports from The New York Times, the company is in pole position to finalize the purchase, having outbid other potential suitors. Deadline has confirmed that the only other remaining bidder, independent film studio A24, is no longer in the running for the acquisition.

The acquisition talks include provisions for the continuity of Letterboxd’s leadership. The New York Times is considering allowing the platform’s co-founders, Matthew Buchanan and Karl von Randow, to remain at the helm of the company. However, under the proposed structure, the duo would report to an executive from The New York Times Company. Despite this change in corporate oversight, the platform is expected to remain a standalone entity for the foreseeable future. The New York Times Company declined to comment on the acquisition when approached by TechCrunch, while representatives from LionTree, Letterboxd, and A24 did not immediately respond to requests for comment from Deadline.

Background

Letterboxd has experienced significant growth in recent years, evolving from a niche community into a major digital hub for movie lovers. The platform reported three million users in January 2021, a figure that surged to 28 million by April of this year. More than half of its user base is under the age of 35. The platform operates on a freemium model, offering basic services for free while charging for advanced features through a paid subscription. Projected earnings for the current year are estimated at $15 million, a figure that represents approximately 4.5% of the reported $330 million acquisition price.

The sale process was initiated by Tiny, which acquired a 60% stake in Letterboxd from founders Matthew Buchanan and Karl von Randow in 2023. Buchanan and von Randow, who are based in New Zealand, each retained a 20% stake in the company. At the start of the sale process, Letterboxd stated that the founders would be involved in any decisions regarding the platform’s future. Tiny hired the boutique investment bank LionTree to oversee the transaction. Alex Michael, a senior managing director at LionTree, described Letterboxd as a "phenomenon" during a recent Financial Times conference, noting that it attracts 30 million monthly users without any paid marketing expenditure.

The initial field of potential buyers included major media and entertainment entities such as Netflix, Sony Pictures Entertainment, and the former Paramount. However, most of these parties withdrew from the process as the asking price increased. A nonprofit organization called Intrinsic Entertainment also expressed interest, stating to Deadline that it had assembled a group of investors and was weeks away from making a $300 million offer. A24 had previously promised to maintain Letterboxd’s independence and leave its business model unchanged, but was ultimately priced out of the competition.

Why it matters

The acquisition would significantly impact the landscape of digital media and film criticism. With 30 million monthly users and a strong demographic skew toward younger audiences, Letterboxd holds substantial influence over how films are discussed and recommended. The integration of Letterboxd into the New York Times Company portfolio raises questions about the platform’s editorial independence and business model. While the New York Times is considering keeping the founders in charge, the requirement for them to report to a Times executive introduces a new layer of corporate oversight. The platform’s current valuation, which is several times its projected annual earnings, reflects the high value placed on its engaged user base and its status as a cultural touchstone for cinephiles. The deal’s outcome will determine whether Letterboxd remains a distinct community or becomes more integrated into a broader media ecosystem.