Exploring the Potential Acquisition of Letterboxd: Will Netflix or Another Major Entertainment Corporation Take the Leap?
Could Letterboxd, the popular film-review social network, be acquired by a major entertainment corporation like Netflix? Founded in 2011, Letterboxd has been exploring potential buyers recently. The platform, majority-owned by Canadian holding company Tiny, has attracted interest from various parties. Co-founders Matthew Buchanan and Karl von Randow retain a 40% share in the company.
Potential buyers for Letterboxd include Netflix, Sony Pictures Entertainment, Paramount Skydance, RedBird Capital Partners, TPG, and Alexis Ohanian's VC firm Seven Seven Six. The idea of a major entertainment player owning Letterboxd raises concerns about potential conflicts of interest, similar to the criticism faced by Rotten Tomatoes when it was owned by NBCUniversal.
Currently boasting over 30 million members worldwide, Letterboxd experienced significant growth during the COVID-19 pandemic. LionTree, an investment and merchant bank, is overseeing the sales process and has reportedly set a valuation of $250 million for Letterboxd. Despite the speculation, Letterboxd, based in Auckland, New Zealand, has chosen not to comment on the potential sale. Netflix and Tiny have also refrained from providing any official statements.
As discussions continue regarding the future ownership of Letterboxd, the platform's loyal user base eagerly awaits updates on its potential acquisition by a major entertainment player.