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Re:

Warner Bros. Agreed to Acquire Flixster and Rotten Tomatoes in 2011

Warner Bros. announced an agreement to acquire Flixster and Rotten Tomatoes in May 2011. The price was not disclosed, and its digital-ownership plans were stated intentions.
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On May 4, 2011, Warner Bros. Home Entertainment Group announced an agreement to acquire Flixster, including Rotten Tomatoes. The company did not disclose the purchase price. Warner Bros. framed the deal as a way to support digital content ownership; that was its stated strategy, not proof that the planned initiatives later succeeded.

What Warner Bros. agreed to acquire

Flixster was a movie discovery and social movie service; Rotten Tomatoes was a film reviews and information site. Warner Bros.’ announcement covered both properties. The transaction was announced as an agreement, and Warner Bros. said Flixster would continue to operate independently.

Rotten Tomatoes had become part of Flixster the year before. On January 4, 2010, Rotten Tomatoes announced that Flixster had acquired it from IGN Entertainment; the two sites said they would remain available as individual properties, and the financial terms were not disclosed. Rotten Tomatoes’ 2010 announcement.

Why Warner Bros. said it wanted Flixster

Warner Bros. described the acquisition as part of its effort to grow digital content ownership. Kevin Tsujihara, then president of Warner Bros. Home Entertainment Group and the Office of the President, said: “Driving the growth of digital ownership is a central, strategic focus for Warner Bros.” He added that the acquisition would help advance that strategy.

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The release pointed to proposed initiatives including Digital Everywhere, a studio-agnostic application intended to help consumers organize and access a digital library, and the studio’s support for UltraViolet. These were plans presented at the time of the announcement; the announcement alone does not establish whether they achieved their intended results.

How the companies said they would operate

Warner Bros. said Flixster would continue to operate independently. Its announcement also said Flixster’s team would remain in San Francisco and Rotten Tomatoes’ Los Angeles team would continue to work autonomously. These statements describe the operating arrangement Warner Bros. announced in 2011, not a guarantee of how the businesses operated afterward.

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What the deal’s price and audience figures tell us

Warner Bros. did not disclose the acquisition price. Contemporaneous coverage likewise said the terms were undisclosed. A $60 million to $90 million figure appeared as an estimate attributed to earlier reports, not as confirmed consideration paid by Warner Bros. TechCrunch’s May 4, 2011 report and The Guardian’s contemporaneous report.

Warner Bros.’ May 2011 announcement gave the following scale figures. They are company-reported measurements from that time, not current audience statistics or independently audited figures:

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Rank #4
Movie Favorites
  • Used Book in Good Condition
Property or measure Figure reported by Warner Bros. in May 2011
Flixster monthly worldwide users More than 25 million
Flixster mobile downloads across platforms More than 35 million
Rotten Tomatoes monthly unique visitors More than 12 million

How to understand the ownership timeline

  • January 4, 2010: Flixster acquired Rotten Tomatoes from IGN Entertainment, according to Rotten Tomatoes’ announcement.
  • May 4, 2011: Warner Bros. Home Entertainment Group announced an agreement to acquire Flixster, including Rotten Tomatoes.
  • Current ownership description: Rotten Tomatoes’ FAQ says Fandango owns the site. The FAQ describes Fandango as a joint venture in which Versant is the majority owner and Warner Bros. is the minority owner. This current description should not be mistaken for the terms of the 2011 transaction. Rotten Tomatoes FAQ.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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