In a shocking turn of events, beloved online entertainment company Rooster Teeth has announced that it will be shutting down due to the challenges faced by the digital media industry. The news was first shared at an all-hands company meeting earlier today, followed by an internal memo from Rooster Teeth's general manager, Jordan Levin.

Levin expressed his sorrow at the decision, explaining that the challenges in consumer behavior and monetization across platforms, advertising, and patronage have led to the difficult choice of closing down Rooster Teeth. He credited Warner Bros. Discovery, who took ownership of Rooster Teeth from AT&T, for their continued investment in the company, its content, and its community.

One of Rooster Teeth's most iconic shows, the Halo machinima series "Red vs. Blue," will be coming to an end with its 19th and final season still set to arrive later this year. Levin remarked that it is only appropriate that the closure coincides with the last season of this beloved series.

Despite the company's closure, Rooster Teeth's podcast network, The Roost, will continue to operate for the time being. However, Warner Bros. Discovery is reportedly looking to sell the podcast network to a potential buyer.

Deadline reports that the shutdown process of the remaining operations of Rooster Teeth will take several months. This marks a significant change for the company, which was founded in 2003 in Texas by Burnie Burns, Matt Hullum, Geoff Ramsey, Jason Saldaña, Gus Sorola, and Joel Heyman.

Notably, in 2022, Rooster Teeth faced criticism for low pay and toxic work conditions. However, the company's legacy will be remembered as groundbreaking as it pioneered a business model that connected creators and content with a dedicated community.

Rooster Teeth's closure is sure to leave a void in the online entertainment landscape. Fans of the company's unique content and innovative approach will have the opportunity to join a livestream about the shutdown tomorrow, March 7, to bid farewell and celebrate the lasting impact of Rooster Teeth on the media industry.

As the chapter comes to a close for Rooster Teeth, Levin emphasized in the memo that the company's legacy is not just a collection of content, but a history etched into the screens, minds, and hearts of its dedicated community.