Rooster Teeth, the production company that developed multiple channels on YouTube and focused on gaming-centric content, announced Wednesday that it will be shutting down.
The Austin, Texas-based company was founded in 2003 and acquired by Warner Bros. Discovery in 2021. He is known for content such as “Red vs. Blue,” one of his longest running web series based on the video game Halo. In addition to the CGI animation “RWBY” based on Monster Hunter, there are also YouTube channels such as “Funhaus” and “Achievement Hunter” in the Let’s Play format. According to the company’s website, its content has more than 45 million YouTube subscribers.
General Manager Jordan Levine shared the news in a statement on Rooster Teeth’s website, saying, “Digital media, driven by fundamental changes in consumer behavior and monetization across platforms, advertising, and patronage. “Due to the challenges faced by…
This was announced to all staff at the meeting. It’s not clear what the timeline is. A Rooster Teeth spokesperson could not provide specifics on how many jobs would be affected.
“We are working in real time on what happens next, and we intend to be as open, direct, and accessible as possible,” Levin said in a statement. Let’s celebrate 21 years of service.” We’ve been around longer than many of our peers since the early days of online video and digital-first content. ”
Variety reported that Warner Bros. Discovery tried unsuccessfully to sell Rooster Teeth before deciding to discontinue the company. A Warner Bros. Discovery spokesperson did not immediately respond to a request for comment Wednesday.
Warner Bros. Discovery announced in February that it generated $3.3 billion in free cash flow in the fourth quarter and ended the year with $6.2 billion in free cash flow, according to CNBC. However, sales and profits fell short of analysts’ expectations, and the stock price fell 10%. CEO David Zaslav said his priorities are increasing free cash flow to improve the company’s health and pay down debt.
Levin said the Rooster Podcast Network will remain active and “continue to operate and meet its obligations while WBD evaluates outside interest in acquiring this growing asset.”
The company is also considering selling some of the most popular titles in its catalog, such as “Red vs. Blue” and “RWBY.”
Rooster Teeth’s closure is indicative of ongoing changes in both the content creation and gaming industries, with the latter experiencing devastating layoffs in both 2023 and 2024.
The company was one of a handful of digital studios, including Maker Studios, Fullscreen, and Machinima, that gained popularity amid the growing audience interest in web-based video and YouTube.
Fullscreen acquired Rooster Teeth in 2014 before being acquired by Otter Media, which became part of Warner Bros. Discovery.
Many of these companies ended up being acquired by major media companies, and in recent years have been shut down or absorbed into other businesses.
Some long-form content, like the one produced by Rooster Teeth, is struggling to maintain an audience as social media consumers shift to shorter-form video content and some attention wanes.
Rooster Teeth showrunner Kelly Shawcross announced several changes to the company in an Instagram video in October. He laments that “YouTube revenue doesn’t apply to us anymore.”
“I know it’s frustrating for some of you, but it’s the reality of what we have to do,” Shawcross said.
online, many fan Company employees were saddened by the news of the closure. Some of the company’s employees posted about their layoffs.
