Alloy Digital and Break Media have reportedly reached a deal to form a new company together called Defy Media. The merger is the latest in a series of deals involving online video talent networks called multichannel networks, or MCNs.
The two companies will combine without any money changing hands and will split control over the new entity evenly, they told the New York Times. Break CEO Keith Richman will be Defy's president, while Alloy's CEO Matthew Diamond will be Defy's chief executive. Some staff cuts could follow the merger, reports indicate.
The deal may be further evidence that online video content creators need scale. Last month, Maker Studios agreed to buy Blip and earlier this year, Awesomeness TV sold itself to DreamWorks Animation.
"This is the beginning of the consolidation," Michael Kassan, MediaLink CEO, told the New York Times.
For more:
- the New York Times had this report
- Variety had this report
Commentary: What does the recent wave of media M&A mean for online video
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