Why is Rooster Teeth shutting down? All about the owners as beloved production company closes after 21 years

Famous production company Rooster Teeth is being shut down after operating for around 21 years. Jordan Levin, who serves as the company's general manager, confirmed the news, and the same has been revealed to employees, as per Variety.

Levin said that Warner Bros. Discovery was associated with their company for a long time after obtaining "ownership and control" from AT&T. He also stated the reasons behind the closure, citing changes in consumer behavior, among other factors.

"It's with a heavy heart I announce that Rooster Teeth is shutting down due to challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage."

He continued by saying that the company's shutdown did not mean an end for them and mentioned that "monetization shifts, platform algorithms, advertising challenges, and the ebb and flow of patronage" have contributed to the shutdown of various companies.

As per Mashable, the Rooster Teeth was established by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldana, Gus Sorola, and Joel Heyman. Around 150 employees are reportedly expected to lose their jobs due to the closure.

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Rooster Teeth was launched in 2003 and created many web series, including Founders and other details

Rooster Teeth was known for its digital content, including a YouTube channel where it accumulated millions of subscribers. The journey of Rooster Teeth began many years ago, in 1997, when three founders, Burnie Burns, Matt Hullum, and Joel Heyman, produced a film titled The Schedule, as per Patrick Eng.

Burns later collaborated with Geoff Ramsey and Gus Sorola to launch Drunkgamers.com. Following the release of a video titled Mac Gamer Switch Parody in 2001, Rooster Teeth was officially launched in 2003.

Back in 2014, it was owned by Fullscreen, which Otter Media later took over. Otter eventually got linked to Warner Bros. Discovery, as per the Los Angeles Times.

While the deal with Fullscreen was finalized, the terms and conditions were not officially revealed. Burnie Burns expressed his excitement about the same, saying that they have done their best in digital content and would continue creating more in "bigger and better ways."

By 2018, Otter Media became a complete owner of Fullscreen alongside another digital media company called Ellation, which later became Crunchyroll. The Hollywood Reporter states that the acquisition was part of Otter's strategy to invest in digital content companies. They had already brought a stake at Fullscreen in 2014.

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What's next for Rooster Teeth after its shutdown?

The news of the Austin, Texas-based company's shutdown has left many fans shocked and disappointed, and they have taken to various social media platforms to express their disappointment. As mentioned earlier, the new challenges in "digital media" have contributed to its closure.

In a separate statement, Warner Bros. Discovery also thanked the creators who have worked alongside the management team to bring much good content over the years.

Although the Roost Podcast Network would continue to operate, the collection of the web series and other animated shows created by the company are supposed to be sold, as per The Independent. Further updates are currently being awaited.

The company organized many events over the years and was mostly known for producing shows such as Red vs. Blue and Camp Camp.