New York Times in exclusive talks to buy movie app Letterboxd for about $330 million

The New York Times Company has entered exclusive negotiations to acquire Letterboxd, the social network for film fans, in a deal valued at roughly $330 million, the Times reported, citing two people familiar with the talks. No agreement has been signed, and the negotiations could still fall apart.

The New York Times Company is in exclusive talks to acquire Letterboxd, the fast-growing social platform where movie fans log, rate and review films, for about $330 million, The New York Times reported Thursday, citing two people familiar with the discussions. The company declined to comment on the report, and no agreement has been signed. The talks could still collapse, according to the report.

If completed, the deal would mark another step in the Times' push beyond news. The publisher has built a bundle of subscription products through acquisitions including the sports site The Athletic, the product review service Wirecutter and the word game Wordle, and it is working toward a goal of 15 million subscribers by the end of 2027.

The New York Times and Letterboxd logos on smartphone screens

A premium price for a cinephile hub

The price under discussion would value Letterboxd at roughly 22 times its projected 2026 earnings before interest, taxes, depreciation and amortization of about $15 million, according to the Times' report. Letterboxd is free to use, but members can pay for a subscription that unlocks extra features.

Under the terms being discussed, co-founders Matthew Buchanan and Karl von Randow would stay in charge, and Letterboxd would continue to run as a standalone platform while tapping the Times' advertising technology, TheWrap reported, citing the Times. The New Zealand-based founders each own about 20% of the company. Canadian holding company Tiny bought a 60% stake in 2023 in a deal that valued Letterboxd at $50 million to $60 million.

From 3 million to more than 30 million users

Founded in 2011, Letterboxd has become one of the most influential destinations for film conversation online, especially among younger moviegoers. The platform reported 3 million users in January 2021, according to TechCrunch, and more than half of its users are under 35. Its membership topped 30.7 million at the end of the second quarter, up 43% from a year earlier, and was approaching 35 million by October, according to TheWrap.

The Letterboxd logo

Alex Michael, a senior managing director at investment bank LionTree, which ran the sale process for Tiny, recently called Letterboxd "a phenomenon" that draws 30 million monthly users "with zero paid marketing," Deadline reported.

Hollywood bidders fell away

The sale drew interest from Hollywood players, including A24, Sony and Netflix, as well as an investor group led by Madison Wells CEO Gigi Pritzker, according to TheWrap. Most dropped out as the price climbed, and A24, the last remaining rival bidder, is out of the running, Deadline reported. A24 had promised to keep Letterboxd independent and leave its business model unchanged.

Not everyone has given up. A nonprofit called Intrinsic Entertainment told Deadline it had assembled a group of investors and was several weeks away from making a $300 million offer. Keeping Letterboxd independent has been a key concern throughout the process, with one competing bidder warning that other potential buyers could put parts of the service behind a paywall, according to TheWrap.

Cover photo: Getty Images via TechCrunch. Images: TheWrap, Letterboxd

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