The New York Times Company is reportedly negotiating a $330 million acquisition of Letterboxd, the popular film-review and social networking platform, as it looks to expand its digital business beyond traditional journalism.
According to a report published by The New York Times on Thursday, citing two people familiar with the discussions, the companies are engaged in exclusive negotiations. However, no final agreement has been reached, and the proposed transaction could still fall through.
The potential acquisition would build on the Times Company’s strategy of diversifying its digital offerings, following previous purchases of sports publication The Athletic, product-review platform Wirecutter and the popular word game Wordle.
The company recently reported adding 420,000 digital-only subscribers during the third quarter, bringing its total paid subscriber base to 13.8 million.
The proposed $330 million valuation would represent more than 20 times Letterboxd’s projected annual earnings of approximately $15 million, according to the report.
Film studios A24 and Sony were also reportedly interested in acquiring the platform, although A24 withdrew from consideration as the expected purchase price increased.
If the acquisition proceeds, the Times Company is expected to incorporate its advertising technology into Letterboxd’s operations while allowing the platform to continue functioning independently for the foreseeable future.
Letterboxd’s parent company has reportedly been working with investment bank LionTree to explore a potential sale.
Founded in 2011 by Matthew Buchanan and Karl von Randow, Letterboxd allows users to log films, publish reviews, create watchlists and interact with fellow cinema enthusiasts.
The platform has experienced significant growth since 2020 and now reportedly has around 30 million users, with a particularly strong following among Generation Z film fans. Research platform Statista has indicated that Gen Z audiences are more likely to attend cinemas than other generations.
Discussions have also reportedly included arrangements for Buchanan and von Randow to remain in charge of Letterboxd, reporting to an executive at the Times Company.
The New York Times Company declined to comment on the reported negotiations, while Letterboxd did not immediately respond to a request for comment outside regular business hours.