Rooster Teeth to Cease Operations and IP Sale Initiated by WB – Sky Bulletin
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Marking the end of a 21-year journey, the multimedia company Rooster Teeth, based in Austin, Texas, is set to shut down.
As reported by Variety, the decision to shut down comes from its parent company Warner Bros. Discovery, which has been unable to find a buyer for Rooster Teeth. The company has not turned a profit, leading to the decision to cease its operations. The closure will lead to around 150 full-time employees losing their jobs, in addition to the impact on several contractors. The shutdown will be gradual, occurring over the span of several months.
Rooster Teeth’s general manager Jordan Levin expressed heartfelt sentiments in a company memo, citing the challenging landscape of digital media. Levin spoke of Rooster Teeth’s enduring legacy in the hearts and screens of its audience.
As Rooster Teeth prepares to close, Warner Bros. Discovery plans to sell some of Rooster Teeth’s intellectual properties, including the notable series Red vs. Blue and RWBY, as well as the animated mecha series gen:LOCK. The Roost podcast network is also on the sales block but will remain operational in the interim.
Warner Bros. Discovery released a statement commemorating the achievements of Rooster Teeth and acknowledging the passion of its fanbase.
Reflecting on Rooster Teeth’s Origins and Growth
Founded in 2003 by a group including Burnie Burns, Matt Hullum, and Geoff Ramsey, Rooster Teeth quickly found an audience with its “Red vs. Blue” series, based on the Halo video game. The company expanded its animated offerings while also exploring live-action content and feature films. Notable productions include “RWBY,” “gen:LOCK,” and “Lazer Team,” among others.
Rooster Teeth also launched a gaming channel called Achievement Hunter and held the RTX fan conventions, although RTX has faced challenges in profitability, resulting in the cancellation of future events.
The various changes in Rooster Teeth’s corporate ownership ultimately brought it under Warner Bros. Discovery’s umbrella in 2022, after its prior acquisition by Fullscreen and Otter Media. Despite the changes, financial viability remained elusive for Rooster Teeth.
A Look into Rooster Teeth’s Financial Challenges
Despite its creative output, Rooster Teeth faced ongoing financial difficulties. With workforce reductions from a peak of about 400 employees, the company continued to strive for profitability that has proved unattainable. Its subscription-based video-on-demand service, rebranded as “FIRST,” experienced a decrease in paid subscriber numbers, exacerbating the financial strain.
The merch store and RTX conventions, alongside allegations from former employees of workplace issues, compounded the struggles, resulting in the company’s forthcoming closure and layoffs.
In summary, the announcement of Rooster Teeth’s shutdown ends a significant chapter in internet and gaming culture. With a legacy spanning over two decades, the pioneering company leaves behind a distinctive mark through innovative content that resonated with a generation of fans. The sale of its beloved IPs hints at a possible continuation of some of Rooster Teeth’s franchises, albeit under new stewardship. For now, the focus is on the employees affected by the closure, as the industry reflects on the impact and evolution of digital media companies like Rooster Teeth.
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