Defy Media, a US-based online video content provider backed by media producers Lionsgate and Viacom, closed a $70m series B round led by investment firm Wellington Management Company yesterday.
Formed by the merger of online content providers Alloy Digital and Break Media in 2013, Defy owns a range of YouTube channels and media brands targeting the 13-34 age bracket, including teen-focused humour brand Smosh – at one time the owner of YouTube’s most subscribed to channel – and film-focused channel Screen Junkies.
Defy produces 72 individual series and its content is viewed around 800 million times each month by an audience estimated at 125 million people.
The funding will be used to expand the company’s comedy, lifestyle and gaming programming to meet demand from new media companies and cable services looking to grow their presence in the over-the-top (OTT) video space.
Matt Diamond, Defy Media’s chief executive, said: “Our brands and programming are currently being embraced by over 100 million people monthly and are poised to be included in the next iteration of paid cable and OTT bundled packages.
“These investments will further allow us to accelerate our original programming to capitalise on the changes that are happening within the media landscape.”
Prior to the merger, production studio Lionsgate had paid $21.4m for a 42% stake in Break Media in 2007, while Alloy received an undisclosed amount from private equity firm Zelnick Media Capital before raising $30m from growth equity firm ABS Capital Partners in early 2013.
The only post-merger funding disclosed by Defy involved media group Viacom paying an undisclosed amount for a minority stake in mid-2014. Reports in February this year stated the company was seeking a buyer but no one has proven willing to meet its price tag, reported to be $500m.