The partnership is expected to speed up the global social platform's growth
Buddle Findlay has advised the founders of global social platform Letterboxd on the sale of a 60% stake in the company to Canadian technology holding company Tiny Ltd.
The acquisition was completed on 29 September. The partnership will drive Letterboxd’s next growth phase through the allocation of additional resources while founders Matthew Buchanan and Karl von Randow remain at the helm of the company.
Buchanan and von Randow highlighted Tiny’s strong track record when it comes to cultivating the growth of similar businesses, and said that the stake acquisition secures Letterboxd’s future as “an independently run company and part of the Tiny stable.”
According to Tiny, it obtained the shares via its private partnership Tiny Fund I, LP. The Letterboxd founders entered an agreement to subscribe 1,430,346 Class A common shares in Tiny at CA$3.40 per common share. The shares will be “subject to a statutory hold period of four months and one day from closing in accordance with applicable securities laws.”
Tiny will gain gross proceeds of CA$4,863,176 as a result of the private placement, which will then be applied towards working capital and for general corporate purposes.
Corporate partner Nick Bragg and TMT partner Allan Yeoman led the Buddle Findlay team that worked on the deal. They were assisted by tax partner Tony Wilkinson, corporate team members Amy Goatley (senior associate) and Hayley Shallard, and TMT senior associate Keri Johansson, as well as other specialists from across the firm.
Variety reported that Letterboxd has been valued at more than US$50m in this deal. The global social platform focuses on film discovery and discussion; over the past five years, it has climbed into the top 1,500 websites globally and has more than 10 million members across over 200 countries. The platform’s users include celebrities like Margot Robbie, Olivia Rodrigo, Ava DuVernay and Christopher McQuarrie.
