Rooster Teeth Closed by Warner Bros. Discovery

Rooster teeth bites the dust after more than two decades.

Head quarter Discovery Warner Bros., after failed attempts to sell the unprofitable fandom, gaming and comedy entertainment division, closes Rooster Teeth's operations. Director General of RT Jordan Levin announced the closure of Austin-based Rooster Teeth during an all-hands meeting Wednesday and in a memo distributed to staff.

The closure of Rooster Teeth will result in the layoff of approximately 150 full-time employees and will also put dozens of entrepreneurs and content creators out of work.

“It is with a heavy heart that I announce the closure of Rooster Teeth due to the challenges facing digital media, resulting from fundamental changes in consumer behavior and monetization across platforms, advertising and patronage” , 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, our minds and our 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 animated series “RWBY” (photo above), the pioneering science fiction parody “Red vs. Blue” and Michael B. Jordan’s mecha animated series “Gen:Lock”. Additionally, WBD is looking to sell the Roost podcast network, with shows covering gaming, true crime, fandom, comedy and food, which for now will continue to operate.

“Warner Bros. Discovery thanks Rooster Teeth’s groundbreaking creators and partners, as well as the strong management team, for their many years of success,” the media company said in a statement. “Your passionate and loyal fans are a testament to your accomplishments.”

Rooster Teeth celebrated its 20th anniversary last year with the launch of new logos and a new slogan, “Just Playing”. The company had cultivated an ardent fan base and became an Internet video destination years before the advent 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 voiceover narrator is referred to by the subtitler as “cock bite”.

Rooster Teeth was founded in 2003 by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola and Joel Heyman. After several changes of ownership, it became part of Warner Bros. Discovery two years ago. In 2019, then-owner WarnerMedia brought in Levin, former CEO of WB, as Managing Director of Rooster Teeth as part of a reorganization in which Hullum (former CEO of RT), Burns and Ramsey took on new creative roles within the company. Burns left Rooster Teeth in 2020.

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

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

At one point, Rooster Teeth's membership had grown to over 400 people. Over the years, the company has continually winnowed its ranks in an attempt to make the company profitable, 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 held the RTX fan conventions in person starting in 2011. Levin recently announced that RTX 2024 would be canceled – and told staff the event had never been profitable.

Among the company's controversies, Rooster Teeth released an open statement in 2022 statement of apology for “hateful and hurtful” conduct toward employees over the years, after a a former staffer detailed her experiences of harassment, underpayment and marginalization in the business.

Read Levin's March 6 memo to staff regarding the company's closure:

Dear Rooster Teeth,

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

We've read the headlines about industry-wide layoffs and shutdowns, and you've heard me give my views and updates on the rapidly changing state of media and entertainment during each of our monthly All Hands meetings.

Since AT&T inherited ownership and control of Rooster Teeth following its acquisition of TimeWarner, Warner Bros. Discovery continued its investment in our business, our content and our community. However, it is now with a heavy heart that I announce the closure of Rooster Teeth due to the challenges facing digital media, resulting from fundamental changes in consumer behavior and monetization across platforms, advertising and marketing. patronage.

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

In the days and weeks ahead, we will have many questions to answer and the opportunity to work together to implement the best way to end things for us and our community. We are working on what happens 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 years of contributing to the zeitgeist, advancing creativity and outlasting many of our peers since the early days of online video and digital content.

TO A CREATIVE LEGACY

From a garage in Buda, Texas, to big and small screens around the world, our teams of dreamers and doers introduced and expanded what made Rooster Teeth different: 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 bankrolled films record participation (at the time). You have accomplished so much and made dreams come true here. You've turned the original IP into video games, comics, and VTubers. You have made short videos, mo-caps and films. You've been a puppeteer, hosted podcasts, and built a thriving community that spans the world. Your creativity knows no bounds and you will continue to contribute meaningfully to culture wherever your path takes you.

TO THOSE WHO COME FIRST

Although it passed through many business owners, Rooster Teeth transcended the media industry and was a vibrant movement that shaped the connection between communities, creators, and storytelling. Our founders didn't have plans for a media empire, but they were about to build one alongside a community that fueled its remarkable growth. In its early days, RT relied on community sponsorship in terms of time, money and unwavering passion. Volunteers became staff and the snowball effect grew, leading to new relationships, marriages, births and shared experiences that changed lives.

TO PIONEER CONTENT CREATION

Our approach to creating content on emerging platforms has paved the way for new media models. We've inspired generations of creators in streaming, machinima, animation, gaming, merchandise, 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-first brand could be. We boldly took our content beyond screens and into community experiences.

TO AN EVOLVING INDUSTRY

Each story reaches its final pages. Rooster Teeth's closure isn't just an end; this 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 sector. As we learn programming updates day by day, we will soon share our plans for shows, franchises, partnerships and spin-off products and share these updates with the teams internally and with the community on RoosterTeeth.com.

IN OUR LAST SEASON

While unintentional, it's only fitting that our final season of “Red vs. Blue” coincides with us going through this shutdown together. Our legacy is not just a collection of content but a story of pixels etched into our screens, our minds and our hearts. Rooster Teeth has left an indelible mark on the media industry, and we should be very proud of the countless ways we've launched a business connecting creators and content with a dedicated community.

With respect, gratitude and sincere appreciation,

Jordan Levin