Two new surprising entities have entered the bidding war for the Letterboxd sale. According to reports, the sale is expected to be valued at more than a whopping $300 million. The popular film-review and social service has been fielding inbound acquisition offers for many months now.
As per a New York Times report citing anonymous sources, the latest entities to have expressed an interest in buying Letterboxd are none other than indie studio A24 and The New York Times Company.
Per the report, any deal is “expected to value Letterboxd at more than $300 million.” That sum would reportedly be around 20 times Letterboxd’s projected earnings of roughly $15 million in 2026.
Besides these two newest entries, others said to have reportedly explored a possible acquisition of the service include Netflix, Sony Pictures Entertainment, Paramount Skydance, private-equity giant TPG, and even Reddit co-creator Alexis Ohanian.
In July this year, a Letterboxd spokesperson said in a statement about reports of potential buyers: “As Letterboxd has grown, it’s natural there will be interest in what we do next. There’s nothing specific for us to share at this time. Any decision about Letterboxd’s future would involve the founders.”
Why is A24 interested in buying Letterboxd?
As per the New York Times report, a plausible reason behind independent film studio A24’s interest in acquiring Letterboxd could be that the social network commands an obsessive, highly engaged Gen Z and millennial cinephile audience that directly aligns with A24’s core demographic.
That’s notable, considering how Letterboxd reportedly has more than 30 million members globally. The company successfully serves a passionate base of movie lovers, and even launched an online video-rental service featuring indie films, which also includes previously unreleased titles.
As of this writing, though, A24 has yet to officially comment on the matter.
Meanwhile, Katie Hill, the New York Times’ SVP, global head of communications and external affairs, responded when asked for a comment, saying, “The company regularly reviews potential investments, and it’s our policy not to comment on speculation about potential acquisitions or divestitures.”
Originally reported on ComingSoon.net.
View original article here Source