Media production company Rooster Teeth shutting down

AUSTIN, Texas — Rooster Teeth, an online studio based in Austin, announced they’re shutting down production and laying off employees after 21 years, in a memo Wednesday.

In a post on their website, that includes a memo from General Manager Jordan Levin, the Rooster Teeth team explains how they were notified in an All Hands meeting of the company’s closure.

Founded in 2003, Rooster Teeth has served as a production company for gameplay and animation, that was eventually acquired by Warner Bros. Discovery. In the memo, Levin wrote the reasoning for the company’s closure is due to “challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising and patronage.”

Although the company is shutting down, the Roost Podcast Network will not be affected by this change and will continue operation, while Warner Bros. Discovery “evaluates outside interest in acquiring this growing asset.”

Rooster Teeth’s hit series “Red vs. Blue”, an action-comedy machinima series that uses footage from the game “Halo”, will close out on its subsequent final season.

The company will be hosting a livestream Thursday, March 7, on their website to answer more questions about their decision.