Why Did 'Red vs. Blue' Makers Rooster Teeth Shut Down After 21 Years?
Rooster Teeth is under new management, but where did it go in the first place?
Published Feb. 6 2025, 2:47 p.m. ET
If you were around in the early days of the internet and have any sort of penchant for gaming, you probably remember the iconic Rooster Teeth series Red vs. Blue. It is a satirical, Office-like approach to gaming humor based on the popular series Halo, years before The Office was even a thing. They introduced the world to Let's Plays and taught content creators how to harness gaming content to make money.
For 21 years, the company produced hit series including Red vs. Blue, RWBY, and more before just suddenly packing it up. They made a public statement about the closure, and here's what we know about why they say they did end up needing to shut down. Yet there may be more to the story, as Rooster Teeth was anything but controversy-free. We'll take a look at why other people surmise they may have called it quits.
Why did Rooster Teeth shut down? Here's what they have to say about it.
In 2003, Rooster Teeth Animation launched Halo parody Red vs Blue, and it became an instant hit. The team, led by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola, and Joel Heyman eventually grew to include series RWBY and gen:LOCK, which starred Michael B. Jordan. They were purchased by Fullscreen in 2014, and by Warner Bros Discovery and Otter Media in 2018.
Although there were rumblings of controversies and trouble behind the scenes, the general public knew little of the chaos and seemed a little blind-sided when the company made a 2024 announcement that they were closing up shop.
General Manager Jordan Levin released a statement to multiple outlets, including Deadline, which read in part that they were closing as a result of "challenges facing digital media resulting from fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage."
Jordan's statement added, "While we learn about updates on programming day by day, we will share our plans for shows, franchises, partnerships, and merch soon and share those updates with teams internally and with the community on RoosterTeeth.com."
While it seems like a logical reason to close a tech-based business, it seems to be missing some important details.
There were some disturbing allegations of racism and a toxic work environment at Rooster Teeth.
In the 2010s and 2020s, multiple former employees came forward with allegations that the company fostered a hostile and toxic work environment, and several employees felt that they faced targeted discrimination.
In October of 2022, for instance, one of Rooster Teeth's former employees, content creator Kdin Jenzen said they had been harassed and subjected to transphobia while they worked with the company for over 10 years. Kdin also accused the company of valuing production over employee well-being. This allegation aligned with others, including allegations of low pay and crunch culture.
Yet despite the fact that the Rooster Teeth team wished to sweep Kdin's allegations under the rug, they were validated when former creative director and Rooster Teeth creator Gavin Free posted on X (formerly Twitter) in support of Kdin's comments. Gavin wrote, "I want to stop and take full responsibility for my past behavior at Rooster Teeth. I'm beyond ashamed when I think back [on my actions] and I am forever grateful to the amazing individuals like Kdin who have shown me more grace than I was ever deserving."
At the time the company closed in 2024, IGN reported that the closure was due to the fact that Rooster Teeth's parent company, Warner Bros Discovery, failed to secure a sale.
Employees have said that they discovered the team was shutting down via X or text message, leaving them to scramble in the wake of the company's sudden closure.
If the allegations about Rooster Teeth are true, it's a disturbingly appropriate level of chaos to mark the end of the company.
Yet it also marked the end of many dreams and the end of an era in early internet content creation.
However, there may be some good news for fans of the brand. In Feb. 2025, RoosterTeeth.com shared an update from Burnie Burns with Box Canyon Productions which read, "Under New Management." The message continues, "Almost one year ago, we were all saddened to learn that Rooster Teeth would be shutting its doors. Today, I am very happy to say that I have completed an acquisition of the Rooster Teeth brand and many of its remaining properties."
It appears that the company is being prepped for re-launch, although the details are still in the works.