Defy Media owned Smosh and 140m followers — then it ceased operations overnight

Defy Media was formed in 2013 by the merger of Alloy Digital and Break Media, and grew into one of the biggest digital media companies aimed at young audiences: its brands — Smosh, Smosh Games, Clevver, AWEme, Break and Made Man — counted more than 140 million followers across YouTube and social media. At one point it reported nearly 400 employees, and in 2016 it raised $70 million in funding led by Wellington Management, with ABS Capital, Lionsgate, Viacom and Zelnick Media Capital among its investors. It was the era's bet that audience conglomerates were the next media giants.

The last year was a slow dismantling. In March 2018 chief executive Matt Diamond insisted the company was not 'actively selling ourselves' — but it had already declined new capital in 2017, saying the offers were underwhelming, and it faced lawsuits including a $300,000 claim from Topix. In July 2018 it sold two of its properties, Screen Junkies and The Escapist. Then, on November 6, 2018, the company announced: 'Regretfully, Defy Media has ceased operations today.' Its statement added: 'Unfortunately, market conditions got in the way of us completing our mission.'

What followed was a wind-down with an audience still attached. Employees at the Beverly Hills production office — at least 80, by Tubefilter's reporting — were told the office would close permanently on January 2, 2019, with full pay until then and no possibility of transfer. Smosh co-founder Ian Hecox said the team was 'finding a new home.' The company's stated focus became finding buyers for brands that still had tens of millions of viewers; the $70 million company around them was gone.