Letterboxd, the famous platform best known for movie recommendations, user reviews, and discussions, has recently sold a majority stake in its business to technology investment and holding company Tiny.
For almost three years, Letterboxd became one of the top sources for films to watch because most users were honest-to-God about what they had to say.
It also became one of the social media phenomena as it brought random reviews, outright slanders, and massive praises, being one of the most popular during the pandemic. The site now has some 10 million active users.
Letterboxd Sold the Company's Majority Stake
Letterboxd made a "tiny" announcement on Friday, and it came from its co-founder Matthew Buchanan, who shared that after 12 years of starting the platform, the company has now sold a majority of its stake to a venture capital firm, Tiny.
"All of this sets the scene for today's announcement: that we have accepted an offer for Tiny to acquire a 60 percent stake in Letterboxd, securing the platform's future as an independently run company and part of the Tiny stable," said Buchanan.
The co-founder regarded Tiny as a company that "acquires and supports great, creative business." The majority stake of Letteboxd was reportedly sold for more than $50 million.
Moving forward, Buchanan and co-founder Karl von Randow will still head the Letterboxd but now have the additional support of Tiny, an independent subsidiary of the firm.
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Letterboxd's Growth Bubble Burst?
One of the most popular apps during the pandemic, Letterboxd has built itself as a source of media and entertainment that provides the world with insights and user reviews. It also gave recommendations for films to watch.
The company recently partnered with Netflix to provide a gateway for its content to be discoverable on Letterboxd, dedicated to social media service.
Pandemic's Effect on Tech
There are many things that the pandemic has taught the world, and one of them is how it can reshape technology to be the forefront of everything today, as the lockdowns highlighted its capabilities and capacities.
Some fell out of business during this time, but many have also thrived, with the hit game "Among Us" as one of the top trends. Among the top activities during the pandemic were video conferences that allowed friends or families to connect despite being away and unable to reach each other physically.
However, this was also a famous undertaking for tech, as apps like Zoom, Microsoft Teams, Google Meet, and more have paved the way for remote working. Letterboxd is among those who have established their brand and offerings before the pandemic but only gained significant popularity and boost during this crisis.
And now, the company has sold most of its stake to Tiny. Letterboxd revealed that the move will secure the future of the independent social network under the venture capital firm.
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