Rooster Teeth Shut Down by Warner Bros. Discovery

rooster teeth is biting the dust after more than two decades.

Mother company Warner Bros. Discovery, after failed attempts to sell the unprofitable comedy, gaming and fandom entertainment division, is shutting down Rooster Teeth operations. general manager of RT Jordan Levin announced the closure of Austin-based Rooster Teeth at a general meeting Wednesday and in a memo distributed to staff.

Rooster Teeth’s closure will result in layoffs of its approximately 150 full-time employees and will also put dozens of contractors and content creators out of work.

“[I]”It is with a heavy heart that I announce that Rooster Teeth will close due to the challenges facing digital media as a result of fundamental changes in consumer behavior and monetization across platforms, advertising and sponsorship,” Levin wrote in the memo, obtained by Variety. “Our legacy is not just a collection of content, but a story of pixels etched into our screens, minds and hearts.” (Read the full memo below.)

Warner Bros. Discovery is currently in talks to sell the rights to certain Rooster Teeth catalog content and intellectual property, such as the popular anime-style series “RWBY” (in the photo on top), the pioneering science fiction parody “Red vs. Blue” and Michael B. Jordan’s animated mecha series “Gen:Lock.” Additionally, WBD is looking to sell the Roost podcast network, with shows spanning gaming, true crime, fandom, comedy and food, which will continue to operate for the time being.

“Warner Bros. Discovery thanks Rooster Teeth’s innovative creators and partners, and strong management team, for its many years of success,” the media company said in a statement. “Your passionate and loyal followers are a testament to your achievements.”

Rooster Teeth celebrated its 20th birthday last year with the launch of new logos and a new slogan, “Just Playing”. The company had cultivated a fervent fan base and became an online video destination years before the arrival of YouTube. His first viral video came with the 2003 debut of “Red vs. Blue,” an animated comedy series that popularized machinima. The company’s name is derived from dialogue in the original trailer for “Red vs. Blue,” in which the subtitler disparages the voice-over narrator as a “cock bite.”

Rooster Teeth was founded in 2003 by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola and Joel Heyman. After multiple ownership changes, it became part of Warner Bros. Discovery two years ago. In 2019, then-owner WarnerMedia turned to Levin, former CEO of the World Bank, as general manager of Rooster Teeth as part of a reorganization that saw Hullum (previously CEO of RT), Burns and Ramsey take on new creative roles at the company. Burns left Rooster Teeth in 2020.

In 2014, Rooster Teeth was purchased for full screenwhich in turn was purchased by middle otter (a joint venture of AT&T and Chernin Group) before Rooster Teeth became part of WarnerMedia under AT&T ownership. In 2022, Discovery closed the acquisition of WarnerMedia to form Warner Bros. Discovery.

Rooster Teeth had operated a subscription video-on-demand service since its inception, and in 2016 renamed the service First. At its peak, Rooster Teeth’s First had around 225,000 paid members at the height of “RWBY” and “Gen:Lock” popularity, but today it has fallen to around 60,000. Warner Bros. Discovery will contact subscribers in the coming weeks about the service’s closure.

At one point, Rooster Teeth’s staff had grown to over 400 people. Over the years, he continually reduced his ranks in an attempt to make the company profitable, but to no avail; Rooster Teeth has operated at a loss for the past decade. In addition to its core content business, Rooster Teeth sold merchandise and hosted in-person RTX fan conventions starting in 2011. Levin recently announced that RTX 2024 would be canceled – and told staff that the event has never been profitable.

Among the company’s controversies, Rooster Teeth in 2022 issued an open Apology statement for “hateful and hurtful” behavior toward employees. Over the years, after a Former staff member detailed her experiences of harassment, underpayment and marginalization. in the company.

Read Levin’s March 6 memo to staff about the company’s closure:

Dear Rooster Teeth,

Since our founders created and uploaded their first video to the World Wide Web in 2003, Rooster Teeth has been a source of creativity, laughter and lasting innovation in the wildly volatile media industry.

We’ve read the headlines about layoffs and closures across the industry, and you’ve heard me give my perspective and updates on the rapidly changing state of media and entertainment during each of our monthly All Hands meetings.

Since inheriting ownership and control of Rooster Teeth from AT&T following its acquisition of TimeWarner, Warner Bros. Discovery has continued its investment in our company, content and community. Now, however, it is with a heavy heart that I announce that Rooster Teeth will close due to the challenges facing digital media as a result of fundamental changes in consumer behavior and monetization across platforms, advertising and sponsorship.

Please note that the Roost team is not currently affected by this action. Roost Podcast Network will continue to operate and meet its obligations while WBD evaluates outside interest in acquiring this growing asset.

In the coming days and weeks, we will have many questions to answer and the opportunity to work together to implement the best way to reduce things for us and our community. We are working on what comes next in real time and will be as open, direct and accessible as possible. Thank you all in advance for your patience and mutual support.

Let’s take a moment to celebrate our 21-year contribution to the zeitgeist, driving creativity and surpassing many of our peers since the early days of online video and digital content.

TO A CREATIVE LEGACY

From a garage in Buda, TX, to global screens large and small, our teams of dreamers and entrepreneurs have introduced and developed what made Rooster Teeth stand out: animation, comedy and games. From new forms of machinima-animated comedy to countless viral memes, including Immortal Snail (aka Snail Assassin), to an American-born animated series adopted by Japan as anime and record-breaking (at the time) crowdfunded films. . You have achieved a lot and made dreams come true here. You’ve turned original intellectual property into video games, comics, and VTubers. You have directed short videos, mo-caps and films. He has been a puppeteer, a podcast host, and has built a thriving community that spans the world. Your creativity has no limits and you will continue to contribute significantly to culture wherever your path takes you.

TO THOSE WHO ARRIVED FIRST

Despite passing through many corporate owners, Rooster Teeth transcended a media business and was a dynamic movement that shaped the bond between communities, creators and storytelling. Our founders didn’t have a plan for a media empire, but they came close to building one along with a community that fueled its remarkable growth. In its early days, RT relied on community sponsorship through time, money, and unwavering passion. Volunteers evolved into staff and the snowball effect grew, resulting in new relationships, marriages, births, and shared life-changing experiences.

TO THE CREATION OF PIONEERING CONTENT

Our approach to creating content on emerging platforms paved the way for new media models. We inspire generations of creators through streaming, machinima, animation, let’s play, merch releases, touring, podcasting and more. Companies like GameStop, YouTube, Facebook, Spotify and TikTok asked us to collaborate with them early on because we set a standard for what a digital brand could be. We boldly take our content beyond screens and into community-driven experiences.

TO AN INDUSTRY IN CHANGE

Each story reaches its final pages. The closure of Rooster Teeth is not simply an end; reflects broader business dynamics. Changes in monetization, platform algorithms, advertising challenges, and the ebb and flow of sponsorship – all of these converging factors have led to many closures in the industry. As we learn about programming updates day by day, we will soon share our plans for programs, franchises, partnerships and products and share those updates with teams internally and with the community on RoosterTeeth.com.

TO OUR FINAL SEASON

Although unintentional, it is fitting that our final season of “Red vs. Blue” coincides with us navigating this closure together. Our legacy is not just a collection of content, but a story of pixels etched into our screens, minds and hearts. Rooster Teeth has left an indelible mark on the media industry and we should be very proud of the countless ways we pioneered a business that connects creators and content with a dedicated community.

With respect, gratitude and sincere appreciation,

Jordan Levin