After more than two decades in operation, Rooster Teeth, the popular fandom, gaming, and comedy entertainment division, is shutting down its operations. The parent company, Warner Bros. Discovery, has been unsuccessful in its attempts to sell the unprofitable division and has announced the closure of Rooster Teeth, resulting in layoffs for its 150 full-time employees and impacting numerous contractors and content creators.

The general manager of Rooster Teeth, Jordan Levin, announced the shutdown of the Austin-based company at an all-hands meeting and distributed a memo to the staff, expressing the challenges faced by digital media due to shifts in consumer behavior and monetization across platforms, advertising, and patronage.

Warner Bros. Discovery is currently in talks to sell the rights to certain Rooster Teeth catalog content and intellectual property, including popular series such as ‘RWBY,’ ‘Red vs. Blue,’ and ‘Gen:Lock.’ Additionally, the company is seeking to sell the Roost podcast network, which will continue to operate for the time being.

Rooster Teeth, known for cultivating an ardent fanbase and becoming an internet-video destination, had celebrated its 20th birthday last year with the launch of new logos and a new tagline, ‘Just Playing.’ The company had gained popularity years before the advent of YouTube, with its first viral video, the 2003 debut of ‘Red vs. Blue,’ an animated comedy series that popularized machinima.

In a statement, Warner Bros. Discovery expressed gratitude to Rooster Teeth’s creators, partners, and management team for their years of success, acknowledging the passionate and loyal fanbase as a testament to their achievements.