Rooster Teeth is considered a pioneer in digital content creation. It was founded in April of 2003 by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola, and Joel Heyman. The company that brought early 2000s hit “Red vs. Blue” and early 2010s hit “RWBY” celebrated 20 years in business just last year. In 2014 Rooster Teeth was acquired by Fullscreen, and changed parent companies until being acquired by Warner Bros. Discovery (WBD).
After the subsidy has been in business for almost 21 years, WBD has decided to close down Rooster Teeth. This decision was made after several unsuccessful attempts to sell the “unprofitable” division. General Manager Jordan Levin announced the shut down on March 6th during an all-hands meeting. Levin later addressed the rest of the staff in a company wide memo.. This closure will result in the layoffs of the 150 full-time employees and dozens of contractors and content creators.
“It’s with a heavy heart that I announce that Rooster Teeth is shutting down due to challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage,” Levin’s memo states. “Our legacy is not just a collection of content but a history of pixels burned into our screens, minds and hearts.”
“Warner Bros. Discovery thanks Rooster Teeth’s groundbreaking creators and partners, and the strong management team, for their many years of success,” WBD said in a statement. “Your passionate and loyal fans are testament to your achievements.”
WBD is still currently in talks regarding the sell of certain intellectual properties from the Rooster Teeth catalog. These properties include the aforementioned “Red vs. Blue,” “RWBY,” and Michael B. Jordan‘s “Gen:Lock.” WBD is also looking to sell the Roost podcast network, which covers gaming, true crime, fandom, comedy, and food. The podcast network is expected to continue operations for the time being.
