The renowned U.S. newspaper "The New York Times" is considering the acquisition of the film lovers social network Letterboxd for about $330 million (close to €300 million). This figure represents around 20 times the platform’s projected earnings for the current fiscal year, estimated at $15 million (around €13.5 million).
According to an article from the newspaper itself, sources close to the deal confirm that talks are underway to complete the purchase, although negotiations remain open and there are still no guarantees that the agreement will be finalized.
The New York Times Company, the publisher’s parent company, and Letterboxd expect that the cofounders of the social network focused on the seventh art, Matthew Buchanan and Karl von Randow, continue to lead the project, although they would then be placed hierarchically under the acquiring company.
To prepare the sales process, Letterboxd has received advice from the investment bank LionTree. The transaction has sparked interest from various potential buyers, largely because of the platform’s solid community of 30 million active users, which is highly valued among film buffs.
Among the firms that have shown interest are companies such as Sony and the film studio A24, producer of titles such as "Moonlight", "Midsommar" or "Lady Bird".
In recent years, The New York Times Company has allocated several hundred million dollars to the purchase of other companies, such as The Athletic, a media outlet specialized in sports information; Wirecutter, a product recommendation portal; and Wordle, a popular game included in its digital entertainment offering.