New York Times might buy Letterboxd for $330M US: report

The ​New York Times Company is in exclusive talks to acquire film-focused social platform Letterboxd in a deal valued at about $330 million US, the New York Times reported on Thursday, citing two ‌people familiar with the discussions.

A deal would extend the media organization’s push beyond its core news business, following acquisitions including sports site The Athletic, product-review service Wirecutter and the ​Wordle game.

The company added 420,000 digital-only ​subscribers in the third quarter, bringing total paid subscribers to 13.8 million.

No agreement has been reached and the ​talks could still fall apart, the report said. The price ⁠under consideration would value ⁠Letterboxd at more than 20 ‌times its projected earnings this year of about $15 million US, according to the newspaper.

The New York Times Company declined to comment, while Letterboxd did not immediately respond to a request ⁠for comment outside regular business hours.

Popular among Gen Z cinephiles

Launched in 2011 by Matthew Buchanan and Karl von Randow, Letterboxd has grown rapidly since 2020, reaching 30 million users, ‌and is particularly popular among Gen Z film fans.

The Times Company and Letterboxd have ​discussed keeping Buchanan and von Randow in charge of the business, with the founders reporting ⁠to a Times Company executive, the report   said.

Letterboxd’s parent has been ⁠working with investment bank LionTree on a potential sale, the report ⁠said. ⁠Film studios A24 and Sony ​had been among prospective buyers, but A24 later dropped out as price expectations ​increased, the report ⁠said.

The New York Times Company would integrate its advertising technology with Letterboxd’s systems, according to the report, which added that the film platform would likely continue   operating as a standalone site for the foreseeable future.