AT&T is looking into possibly selling Rooster Teeth Productions LLC, a subdivision of WarnerMedia’s Sales and Distribution subsidiary, Bloomberg reports.
Bloomberg’s sources, who remained anonymous because the matter is “private,” said the ongoing coronavirus pandemic has “complicated efforts to sell the business.” This comes after AT&T spun off DirecTV and other streaming parts of the business in a deal with TPG Capital in February 2021. AT&T did not specify how much it’s possibly seeking in the sale of Rooster Teeth, according to Bloomberg.
Rooster Teeth cancelled RTX Austin 2020 due to the COVID-19 pandemic, rescheduling the event for the following September. RTX returns this year as a digital event called RTX At Home, taking place between July 8-17. The annual event goes back to Austin in 2022, though it’s unclear if in-person attendance will be allowed.
According to Bloomberg’s sources, Rooster Teeth was already in a precarious position. Revenue dipped from $70 million in 2018 to $50 million in 2019. In June 2020, Rooster Teeth co-founder and CEO Burnie Burns left the company.
Rooster Teeth is perhaps best known for the animation series RWBY, though the company rose to prominence in the early days of internet videos thanks to Red vs. Blue.
Rooster Teeth isn’t the only company the phone giant has sold in recent years. Sony bought Crunchyroll in 2020 for $1.2 billion. (Sony also owns rival anime streaming service Funimation.) The company also flirted with selling WB Games last year but rescinded the decision, planning to hold onto it for the foreseeable future.