Streaming Giants Netflix, Paramount, and Sony Allegedly Eyeing Acquisition of Letterboxd

Letterboxd could potentially have a new majority shareholder soon, with several notable companies reportedly interested. Among the possible buyers are Netflix, Sony Pictures, Paramount, private equity firm TPG, and Reddit co-founder Alexis Ohanian, as reported by Puck. Additionally, earlier reports suggested that Versant, the company behind Fandango and Rotten Tomatoes, was also exploring an acquisition.

The holding entity Tiny is believed to be negotiating with interested parties to offload its stake in the film-centric platform. This year, Tiny acquired 60% of Letterboxd, which had a valuation of approximately $50 million. The co-founders, Matthew Buchanan and Karl von Randow, retain ownership of the remaining shares, as noted by Variety. The investment bank Liontree is currently managing the sales process, which reportedly estimates Letterboxd’s value at $250 million.

The platform has experienced significant user growth, especially during the COVID-19 pandemic. As of August 2022, Letterboxd had around 6.5 million members, a number that has surged to approximately 30 million, with 10 million new members joining last year alone, according to Deadline.

If a major studio like Netflix, Sony Pictures, or Paramount were to acquire Letterboxd, it raises potential conflicts of interest, as these entities would own one of the main platforms for film discussions. Similar concerns arose when Rotten Tomatoes was owned by NBCUniversal. Although Warner Bros. Discovery (which Paramount may acquire soon) holds a minority stake in Rotten Tomatoes, NBCU sold the website along with its cable networks earlier this year.