After announcing it would shut down after years of financial insecurity in Mar. 2024, the humble digital media company Rooster Teeth surprised us all when it revealed a saving grace had arrived in the form of an acquisition.
Responsible for cult classic animated series like RWBY and Red. vs Blue, Rooster Teeth had struggled to turn its devoted viewers into a sustainable profitable venture, with budgets being cut in the past few years and the distribution rights to RWBY being sold to Crunchyroll. Eventually, parent company Warner Bros. Discovery decided to strip it for parts, halting production on RWBY and shopping Rooster Teeth’s podcast network.
General manager Jordan Levin sent a memo to staff that read, “Since our founders created and uploaded their first video on the then-called World Wide Web in 2003, Rooster Teeth has been a source of creativity, laughter, and lasting innovation in the wildly volatile media industry.”
“We’ve read the headlines about industry-wide layoffs and closures, and you’ve heard me give my perspective and updates on the rapidly changing state of media and entertainment,” Levin added. Over 150 people lost employment or freelance contracts as a result of the closure.
The Box Canyons acquisition
News of RWBY‘s unlikely survival came when the RWBY cast lent themselves to an announcement video, telling fans that some good news was on the way despite them not being able to share details. Viz Media purchased the rights to the series, and another season is planned.
Then on Feb. 5, 2025, Burnie Burns (described on the Rooster Teeth website as “executive something”) gave us another update:
Almost one year ago, we were all saddened to learn that Rooster Teeth would be shutting its doors. Today, I am very happy to say that I have completed an acquisition of the Rooster Teeth brand and many of its remaining properties.
A video titled ‘Homecoming’ was also uploaded to Rooster Teeth’s YouTube channel. It was taken at the company’s Austin, Texax base of operations, and teased the comeback, which is being described as a rebrand — longtime fans will know this is far from the first one.
Are Burnie Burns, Matt Hullum, and Adam Kovic returning?
Burns is returning as an executive after leaving in 2020. He co-founded Rooster Teeth, created Red vs. Blue, and has a long history with the company. Burns oversaw the acquisition and retention of many employees. He clarified on the aforementioned Morning Somewhere podcast that he had acquired the brand, specifically.
Former CEO Matt Hullum hasn’t said anything yet, but is unlikely to return. The same can be guessed for Adam Kovic, who was let go in 202o after allegations of him behaving inappropriately with fans surfaced.
Rooster Teeth said in a statement, “We parted ways with two employees whose conduct did not reflect the values of our company and our community. Decisions like this are never easy, but it is important that we stay true to the values that we aspire to as a company, and that we hope to inspire in our community.”
He also asked people to not badger former employees for their opinion on the company or for comment, saying that many are doing their own thing away from Rooster Teeth. He added that didn’t mean some employees wouldn’t return, but that we should allow privacy and space for things to unfold. Some people have clarified they will return, including producer Rocco Botte, who said the next generation of the company aims to “let the freak flag fly” and it redefines itself for a new era.
What’s next for Rooster Teeth
While RWBY moves ahead at Viz Media, Box Canyon announced a slate of projects for 2025 and beyond, including production on some classic Rooster Teeth series, an original audio story titled Again, and a reimagining of Burns’ first movie, The Schedule.
It’s clear Box Canyons wants to recapture some of the early days magic of Rooster Teeth, which makes sense given its insular community has been a rollercoaster of ups and downs, in terms of reactions to content as well as workplace controversy. Whatever happens next, this is one bird that refuses to get stuffed.
Published: Feb 6, 2025 09:21 am