Back in 2018, AT&T acquired Otter Media that included the likes of Crunchyroll, Rooster Teeth, and more media companies. But in the years since, AT&T has notably been narrowing down this acquisition by selling off its various pieces to other companies such as the notable acquisition of Crunchyroll by Sony. Now the Motley Fool is reporting that “people familiar with the matter” claim that AT&T is currently searching for potential buyers for video production house Rooster Teeth Productions, another part of its WarnerMedia entertainment arm.
Rooster Teeth, which was founded in 2003, is a video production company based in Austin, Texas, that makes a variety of both animated and live-action content. AT&T acquired the business as part of a broader 2018 deal for a majority stake in its then-owner, Otter Media.
Under AT&T, Rooster Teeth was slimmed down. In late 2020, 13% of the production company’s staff was laid off and a new general manager was brought in. Previous to that, co-founder Burnie Burns exited the company to explore new ventures.
The unit has not done well in recent years. According to one of Bloomberg’s sources, its annual revenue fell to roughly $50 million in 2019; the previous year Rooster Teeth reaped around $70 million.
The “for sale” sign in Rooster Teeth’s window is part of a broader move to jettison non-core AT&T assets. As with other major telecoms, the company plans to widen its high-speed 5G network, an undertaking that promises to be an expensive and long-duration project. It also aims to continue building out its fiber-optic assets.
In the entertainment sphere, the company prefers to put money into productions for its successful video streamer HBO Max.
— DC Nation (@thedcnation) August 7, 2020
Looks like even that overweight, blue alien Wonder Woman in mom-jeans couldn’t save them. What do you think of AT&T potentially selling Rooster Teeth? Are there any Rooster Teeth projects you’re currently enjoying? Sound off in the comments below.
So Rooster Teeth is for sale.
Everyone who mattered already left or was pushed out.
All they have going for them now is RWBY (which is on the decline) and some gaming livestreams that were run by sex pests.
How much are they realistically gonna fetch? pic.twitter.com/s0yMTObpAX
— Kneon (@Kneon) April 24, 2021