On March 6, 2024, Rooster Teeth general manager Jordan Levin notified employees that the company would close over the next several months. In an email, he cited reasons for the shutdown including "fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage", with it being reported that the number of subscribers to Rooster Teeth's "First" service had dropped to around one-quarter of their peak and that Rooster Teeth as a whole had been unprofitable for a decade. Then-parent Warner Bros. Discovery (formed from the sale of WarnerMedia from AT&T into a Reverse Morris Trust merger with Discovery, Inc. in 2021.) would gauge interest in Red vs. Blue, and the studio's other intellectual property (including RWBY, and Gen:Lock).
On March 6, 2024, Rooster Teeth general manager Jordan Levin notified employees that the company would close over the next several months. In an email, he cited reasons for the shutdown including "fundamental shifts in consumer behavior and monetization across platforms, advertising, and patronage", with it being reported that the number of subscribers to Rooster Teeth's "Firs.t" service had dropped to around one-quarter of their peak and that Rooster Teeth as a whole had been unprofitable for a decade. Then-parent Warner Bros. Discovery (formed from the sale of WarnerMedia from AT&T into a Reverse Morris Trust merger with Discovery, Inc. in 2021.) would gauge interest in Red vs. Blue, and the studio's other intellectual property (including RWBY, and Gen:Lock)