Todd Spangler, writing for Variety:
“Regretfully, Defy Media has ceased operations today,” the company said in a statement released Tuesday evening. “We are extremely proud of what we accomplished here at Defy and in particular want to thank all the employees who worked here. We deeply regret the impact that this has had on them today… Unfortunately, market conditions got in the way of us completing our mission.”
The company at one point reported having nearly 400 employees. Defy did not confirm its current headcount, which has shrunk in recent months as it pared back the business in the hopes of staying afloat.
The company’s in-house studios had produced 75 regularly scheduled shows. It’s not clear what will happen to the Defy brands going forward, but the company indicated it’s seeking buyers or partners for the properties. Defy’s brands, which include Smosh, Smosh Games, Clevver, AWEme, Break and Made Man, have more than 140 million followers across YouTube and social media, according to the company.
I’m not stunned by this development, but I’m saddened by it. I have no idea how well or how poorly Defy was managed (poor management can put any company out of business) but it says something about the industry when even a company that manages some of the internet’s biggest video brands can’t make things work. Basically, the “pivot to video” didn’t work out and we are still in the middle of the fallout from it.
See also: Vice Media on track to reduce its staff by up to 15%.