New York Times Company in Advanced Talks to Acquire Letterboxd

The New York Times Company is engaged in exclusive negotiations to purchase Letterboxd, a social platform catering to movie enthusiasts, for an estimated $330 million. This transaction would broaden the publisher's digital presence beyond news content. Reports emerged on Thursday, following a protracted competition for the film-review platform.

TheWrap had initially highlighted the Times' interest in September, and October identified it as a frontrunner. Unlike film studios pursuing Letterboxd, the Times could safeguard the platform's autonomy without potential conflicts over user reviews. The acquisition aligns with the publisher's strategy of expanding its subscription and advertising businesses through acquisitions such as The Athletic, Wirecutter, and Wordle.

The suggested price corresponds to approximately 22 times Letterboxd's projected 2026 earnings before interest, taxes, depreciation, and amortization, valued at $15 million, according to the Times, citing two informed sources. Matthew Buchanan and Karl von Randow, the co-founders, would retain control under the proposed deal, with Letterboxd functioning as an independent entity utilizing the Times' ad technology.

The Times refrained from commenting. The deal has not been finalized, and negotiations may yet unravel. Established in 2011, Letterboxd enables users to rate and review films, track viewing history, and exchange recommendations. Its user base surpassed 30.7 million by the end of the second quarter, a 43% increase from the previous year, and was nearing 35 million by October, as per TheWrap's earlier reporting.

The platform has emerged as a significant platform for film discourse, particularly among younger audiences. The sale proceedings, managed by investment bank LionTree, garnered interest from A24, Sony, Netflix, and an investor consortium led by Madison Wells CEO Gigi Pritzker, among others. Letterboxd is chiefly owned by Canadian holding company Tiny, which acquired a 60% stake in 2023 for $50 million to $60 million.

The co-founders hold the remaining 40%. For the Times, obtaining Letterboxd would provide an established digital audience as the publisher aims for 15 million subscribers by year-end 2027, while expanding its advertising operations to diversify revenue beyond its core news operations.