Defy Media
| Company type | Private |
|---|---|
| Industry | Digital media |
| Predecessor | Alloy Digital, Break Media |
| Founded | 1996 (as Alloy Online) |
| Founder | James K. Johnson, Matthew Diamond |
| Defunct | 2018-11-06 |
| Fate | Ceased operations; assets frozen by creditors; some properties sold off |
| Successor | Mythical Entertainment (Smosh), Enthusiast Gaming (The Escapist), Fandom (Screen Junkies), Hearst Magazines (Clevver Media) |
| Headquarters | Beverly Hills , United States |
Area served | United States, online global audience |
Key people | Matt Diamond (former CEO), Ian Hecox (CEO of Smosh brand post-Defy) |
| Products | Online digital media content and brands targeting ages 12 to 34, including Smosh, The Escapist, Screen Junkies, Clevver Media, Break.com, AddictingGames.com |
Defy Media, LLC was a U.S.-based digital media enterprise specializing in original online content aimed at viewers aged 12 to 34. Established in 1996 under the name Alloy Online (which later became Alloy Digital), the company emerged in 2013 following a merger with Break Media.
On November 6, 2018, Defy Media halted all operations after its assets were frozen by creditors, leaving properties such as Smosh without corporate backing. Former staff members pointed to financial mismanagement, elevated costs related to YouTube, legal complications, rapid expansion, and a shrinking advertising market as primary causes of its downfall.
1996–2009: Alloy, Inc.
Alloy, Inc.—also recognized as Alloy Online—was launched in 1996 by James K. Johnson and Matthew Diamond as a holding company for Alloy, a magazine and website targeting teenagers. By its initial public offering on NASDAQ (ticker: ALOY) in May 1999, the site reported monthly revenues of $15.5 million and had amassed 1.3 million registered users. In January 2000, Alloy expanded by acquiring book publisher 17th Street Productions, which was subsequently rebranded as Alloy Entertainment.
Among its early holdings were Delia's (purchased in 2003 and spun off in 2005), CCS.com (acquired in 2000 and sold to Foot Locker in 2008), and Channel One News (bought in 2007 and sold to Houghton Mifflin Harcourt in 2014).
2009–2013: Alloy Digital
In 2009, Alloy established Alloy Digital Networks to oversee its digital properties.
The company went private in 2010 after an investment led by ZMC and was restructured as Alloy Digital in 2011. During the following two years, Alloy Digital expanded through acquisitions including Smosh, Themis Media (which owned The Escapist and WarCry Network), Generate LA-NY, and Clevver Media. In 2012, ZMC divested the Alloy Entertainment division to Warner Bros. Television.
2013–2017: Merger and investment
October 2013 marked the merger of Alloy Digital and Break Media into Defy Media, creating a multi-platform media firm focused on audiences aged 12 to 34. Facilitated by RBC Capital Markets, this consolidation resulted in ownership stakes held by ZMC, ABS Capital Partners, and Lionsgate.
In 2014, Viacom acquired an interest in Defy Media by contributing assets such as GameTrailers, Addicting Games, and Shockwave. Defy secured $70 million from Wellington Management Company in 2016, with ZMC exiting its position by the following year.
2018: Decline and dissolution
In March 2018, Defy Media reduced its workforce by approximately eight percent and withdrew from programmatic advertising along with video licensing sectors. Creative director Joe Bereta of Smosh left the company, succeeded by Luke Barats. By June, multiple publishers claimed unpaid advertising fees; among them was Topix, which initiated a $300,000 lawsuit.
During July, Defy divested The Escapist to Enthusiast Gaming and transferred ownership of Screen Junkies to Fandom. Efforts led by former CEO Matt Diamond and others to acquire the company from senior creditor Ally Bank were unsuccessful. On November 6, 2018, Defy Media abruptly ceased operations and dismissed all employees at its Beverly Hills headquarters. Within one day, creditors froze the company’s assets.
Industry experts attributed Defy’s failure to ineffective financial oversight, overly ambitious investments, reliance on dominant social media platforms, and evolving dynamics within the digital media landscape. Seeking new stewardship for the Smosh brand, CEO Ian Hecox eventually saw it acquired by Mythical Entertainment on February 22, 2019.
Matthew "MatPat" Patrick, former head of audience development, accused Defy Media of misappropriating $1.7 million from YouTube creators, alleging that the firm operated similarly to a Ponzi scheme designed to attract investors.
Content
Defy Media managed and operated a variety of online brands such as Smosh, Shut Up! Cartoons, Smosh Games, Clevver Media, Break.com, The Escapist, AddictingGames.com, Gurl.com, MadeMan, CagePotato, The Warp Zone, and Chickipedia, many of which originated from Break Media. These properties maintained dedicated websites and YouTube channels that specialized in comedy, entertainment, news, gaming, viral phenomena, female-oriented content, male-focused culture, and MMA. Defy’s content lineup featured shows such as The Single Life, The Confession, Fashion on the Fly, Dating Rules, Chasing, Style Rules, Wendy, Style Setters, and The Sub.
By 2012, Defy’s brands amassed over 38 million followers and attracted 221 million unique visitors each month.[1] Their video channels drew more than 80 million monthly viewers.[2]
Brands
Among Defy Media’s holdings were the viral video platform Break.com, MadeMan.com aimed at young male audiences, flash game websites AddictingGames.com and Shockwave.com, the DIY prop and cosplay channel Awe.Me, as well as the prank-focused channel Prank It FWD.
Former sites and channels
Following the merger of Alloy Digital and Break Media, Defy discontinued several underperforming platforms including MMA site CagePotato, Chickipedia, HolyTaco, AllLeftTurns, and TuVez. Certain brands were divested to other entities.
The Game / Film Theorists / GTLive
Founded by Matthew Patrick and Stephanie Patrick on August 22, 2009 as "The Game Theorists," this brand expanded with The Film Theorists in May 2014 and GTLive in August 2015.
Shut Up! Cartoons
This animated content spin-off from Smosh launched in April 2012 and consistently ranked among the top 25 channels by weekly views. Prominent series included Zombies vs. Ninjas, Pubertina, Krogzilla, Oishi High School Battle, Smosh Babies, and Paper Cuts. The channel was discontinued on June 23, 2017.
Screen Junkies
Screen Junkies focused on film and television commentary with programs like the parody trailer series Honest Trailers, The Screen Junkies Show, and debate formats such as Movie Fights and TV Fights. It also featured Screen Junkies News, previously known as ClevverMovies.
On October 6, 2017, creator Andy Signore was suspended amid public allegations of sexual assault and harassment. Reports revealed that Defy Media’s human resources had previously suppressed complaints until the matter became public. Two days later, Signore was dismissed for "egregious and intolerable behavior."
Defy Media sold Screen Junkies to Fandom on July 2, 2018.
The Escapist
Alloy Digital acquired The Escapist in November 2012. Catering to video game fans, it generated approximately 28 million page views monthly. The website earned both a Webby Award and People's Voice Award in 2008. In 2012, it inaugurated the Escapist Expo in Durham, North Carolina; the second annual event took place in October 2013.
Initially part of the AddictingGames Network alongside AddictingGames.com, The Escapist was sold to Enthusiast Gaming—owner of Destructoid—in July 2018.
Clevver Media
Established in 2006 by Michael Palmer and Jorge Maldonado, Clevver Media became part of Alloy Digital after its acquisition in June 2012. Catering primarily to millennials, the company manages six YouTube channels centered on entertainment and celebrity news, including ClevverTV, ClevverMusic, ClevverNews, ClevverMovies, ClevverStyle, and ClevverTeVe. In 2012, Comscore ranked Clevver among the top ten YouTube networks. Executive producer Joslyn Davis oversaw a team of hosts such as Deidre Behar, Tatiana Carrier, Lily Marston, Erin Robinson, among others. Within Defy Media, Clevver represented the second-largest YouTube group specializing in sponsored content.
Additional properties under the Clevver Network umbrella included Crushable, The Gloss, The Grindstone, Mommyish, and Blisstree. Following Defy Media's shutdown, Hearst Magazines acquired Clevver Media on February 15, 2019.
Smosh
Smosh was created in 2005 by Ian Hecox and Anthony Padilla, later purchased by Alloy Digital in July 2011. Targeting an audience aged 12 to 24, it draws approximately 1.5 million monthly visitors. Known for popular series like Every [Blank] Ever and The Big What If, Smosh earned the nickname the Saturday Night Live of YouTube from Time in 2006. Its related channels include Smosh Games, Smosh Pit, El Smosh, as well as the now-defunct Shut Up! Cartoons.
Smosh Games launched in September 2012 as a rebranding of ClevverGames, offering gameplay footage, reviews, and the Honest Game Trailers series. It achieved one million subscribers within three months and has amassed over 350 million views.
On November 12, 2018, Smosh confirmed ongoing content production with continued independent releases across their YouTube channels. Subsequently, they became part of Mythical Entertainment following acquisition by Rhett & Link.
Gurl.com
Gurl.com was created in 1996 by Rebecca Odes, Esther Drill, and Heather McDonald as an online publication addressing female adolescent topics such as body image and sexuality. Alloy acquired Gurl.com in 2009 and refreshed its branding with a new logo in 2011. The website ceased operations after Defy Media’s closure in 2018.
In 2020, former video editor Jamie Petitto disclosed that she had attempted to purchase Gurl.com from Defy Media but was unable to meet their $3 million asking price.
CagePotato
CagePotato served as a news and entertainment platform dedicated to MMA coverage but has since been officially shut down.
Break.com
Break.com is an entertainment and comedy site targeting males aged 18 to 35. Founded in 1998, it was acquired by Defy Media in 2013 and discontinued in 2018 following Defy’s closure. The rights were later obtained by Yeah1 Network, which relaunched the platform in 2019.