Is Rooster Teeth Closing Down? What will Happen to Rooster Teeth Shows? Why Rooster Teeth is Shutting Down?
by Aishwarya
Updated Mar 07, 2024
Is Rooster Teeth Closing Down?
Yes, Rooster Teet is closing down. After more than two decades of operation, Rooster Teeth is facing imminent closure as its parent company, Warner Bros. Discovery, has made the decision to shut down the unprofitable division encompassing fandom, gaming, and comedy entertainment.
Despite attempts to sell Rooster Teeth, the absence of successful deals has led to this decisive action. In an all-hands meeting, Rooster Teeth's general manager, Jordan Levin, informed the Austin-based staff about the closure. A memo distributed to employees confirmed the news, indicating the profound impact on approximately 150 full-time employees, along with various contractors and content creators associated with the company, according to a report in Variety.
With the impending shutdown of Rooster Teeth, the fallout is expected to affect around 150 full-time employees, as well as numerous contractors and content creators linked to the company. Following an announcement during an all-hands meeting, where general manager Jordan Levin delivered the news, a memo was circulated to provide further details.
Despite efforts to sell the division, the inability to secure successful deals has prompted Warner Bros. Discovery to take this drastic step. Currently engaged in negotiations, the company is seeking to offload the rights to specific Rooster Teeth catalog content and intellectual property, which includes the well-received anime-style series "RWBY."
About Rooster Teeth
Rooster Teeth Productions, LLC, an American production company founded in 2003 by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola, and Joel Heyman, holds its headquarters in Austin, Texas. A subsidiary of Warner Bros.
Discovery Global Streaming & Interactive Entertainment, Rooster Teeth gained prominence with its inaugural production, "Red vs. Blue," which premiered in April 2003 and stands as the third longest-running episodic web series globally. The company diversified its content portfolio, venturing into live-action, comedy, Let's Play videos, and full animated productions, alongside reality shows, video game development, and podcasts.
To sustain its endeavors, Rooster Teeth introduced "Sponsorships," now known as "FIRST," offering subscribers exclusive content access, early releases, and merchandise discounts. The company, recognized for hosting an annual convention called RTX, expanded its reach globally, with events in Sydney and London. Boasting a substantial online presence, Rooster Teeth's primary YouTube channel, as of September 2021, has over 9.18 million subscribers and exceeds 6 billion video views, with a total of over 45 million subscribers across all channels.
However, on March 6, 2024, Rooster Teeth's general manager, Jordan Levin, delivered the sobering news to employees that the company would be shutting down. This marked the end of a significant chapter in online entertainment, with the closure process anticipated to unfold over the course of several months.
History and MileStones of Rooster Teeth
The brief history outlines Rooster Teeth's evolution from its humble gaming origins to becoming a multimedia powerhouse with a significant impact on online entertainment.
Formation and Early Ventures (1997-2003)
Burnie Burns and Matt Hullum, while at the University of Texas, collaborated with actor Joel Heyman to create the 1997 independent film "The Schedule." Despite limited success, the project facilitated their move to Los Angeles. Later, during their time at local company Telenetwork, they met Geoff Ramsey, Gustavo Sorola, Dan Godwin, and Jason Saldaña. This group formed drunkgamers.com, a platform for reviewing video games under the influence.
From Drunk Gamers to Rooster Teeth (2003-2008)
Evolving from the "Drunk Tank Podcast" to the "Rooster Teeth Podcast," the team expanded its content beyond gaming. The name "Rooster Teeth" emerged from a euphemism in the original Red vs. Blue trailer. The company's core philosophy, led by Burnie Burns, emphasized creating content they genuinely wanted to see. By 2017, production costs varied from $15,000 to $100,000 per episode.
Growth, Acquisitions, and Diversification (2008-2016)
Rooster Teeth's hybrid business model included subscriptions, ads, licensed studio productions, merchandise, and live events. In 2014, Fullscreen acquired Rooster Teeth, providing resources to compete with major producers like Netflix and HBO. The company expanded its offices to Los Angeles and released its feature film debut, "Lazer Team," in 2015. The hiring of content executives in 2016 marked a strategic move for audience expansion.
Challenges and Restructuring (2018-2020)
Rooster Teeth faced restructuring in 2018, aligning with Ellation under Otter Media. Despite changes, the commitment to quality programming remained a priority. In 2019, layoffs affected 13% of the workforce, and key founders shifted into creative roles. The company continued its commitment to charitable efforts through events like Extra Life.
Transition and Recent Developments (2021-2023)
Reports of AT&T considering selling Rooster Teeth in April 2021 indicated financial challenges. However, no sale occurred, and Rooster Teeth became part of the Warner Bros. Discovery merger in April 2022. Celebrating its 20th anniversary in 2023, Rooster Teeth underwent a rebrand, introducing a new logo, color scheme, and slogan. The company continued fostering talent with the Rooster Teeth Digital Creators Program.
Rooster Teeth Overview
|
Specifications |
Details |
|---|---|
|
Company Name |
Rooster Teeth |
|
Company Type |
Subsidiary |
|
Industry |
Entertainment |
|
Founded |
April 1, 2003; 20 years ago |
|
Founders |
Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola, Joel Heyman |
|
Headquarters |
Austin Studios, Austin, Texas, U.S. |
|
Number of Locations |
8 |
|
General Manager |
Jordan Levin |
|
Chief Content Officer |
Matt Hullum |
|
Executive Creative Director |
Geoff Ramsey |
|
Creative Director |
Barbara Dunkelman |
|
Number of Employees |
150 |
|
Parent Company |
Warner Bros. Discovery Global Streaming & Interactive Entertainment |
|
Divisions |
Rooster Teeth Animation, Rooster Teeth Games, Rooster Teeth Studios, and The Roost Podcast Network |
What will Happen to Rooster Teeth Shows?
Following the decision to shut down Rooster Teeth, approximately 150 full-time employees are expected to be laid off, impacting both contractors and content creators associated with the company, according to Variety. The closure raises concerns about the fate of Rooster Teeth's extensive catalog of shows. Currently, Warner Bros.
Discovery is engaged in negotiations to offload the rights to specific Rooster Teeth content and intellectual property, including the popular anime-style series "RWBY." The outcome of these negotiations will determine the future availability and distribution of Rooster Teeth's shows, leaving fans and industry observers eagerly awaiting updates on the fate of the beloved programming.
Why Rooster Teeth is Shutting Down?
Rooster Teeth is facing closure due to the decision by its parent company, Warner Bros. Discovery, to shut down the unprofitable division that encompasses fandom, gaming, and comedy entertainment. Despite efforts to sell the company, no successful deals were secured, leading to this drastic decision. The closure was officially communicated to the Austin-based staff during an all-hands meeting, where RT general manager Jordan Levin delivered the news.
Approximately 150 full-time employees are expected to be laid off as a result, impacting both contractors and content creators. Warner Bros. Discovery is currently in negotiations to offload the rights to specific Rooster Teeth catalog content and intellectual property, indicating an attempt to mitigate losses and streamline their portfolio.
Is Rooster Teeth Closing Down - FAQs
Yes, Rooster Teeth is indeed facing closure. Parent company Warner Bros. Discovery has made the decision to shut down the unprofitable division encompassing fandom, gaming, and comedy entertainment.
Around 150 full-time employees are expected to be laid off with the closure of Rooster Teeth. This decision will also impact numerous contractors and content creators associated with the company.
Rooster Teeth is shutting down due to financial reasons. Despite efforts to sell the company, no successful deals were made, prompting Warner Bros. Discovery to make the decision to close the division.
Warner Bros. Discovery is currently engaged in negotiations to offload the rights to specific Rooster Teeth catalog content and intellectual property. This includes the well-received anime-style series "RWBY." The outcome of these negotiations will determine the future availability and distribution of the shows.
As of now, the closure of Rooster Teeth seems imminent, and efforts to sell the company have been unsuccessful. The focus is currently on offloading specific content rights and intellectual property, suggesting a strategic move by Warner Bros. Discovery to manage losses and restructure their entertainment portfolio.