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Defy Media Sells Minority Stake to Viacom in Exchange for Its Gaming Companies

6/18/2014

By Lucas Shaw
TheWrap

Defy Media has acquired Addicting Games, GameTrailers and Shockwave from Viacom, the media conglomerate that owns MTV, Comedy Central and Paramount Pictures.

Defy's network of online video channels reaches more than 155 million viewers a month and boasts more than 40 million YouTube subscribers. A lot of those viewers come to gaming channels like The Escapist, Gamefront and SMOSH Games, an offshoot of Defy's most popular channel, SMOSH.

This deal extends Defy's reach in that vertical, as the three online properties host free games and videos about games. In exchange for the three sites, Viacom has taken a minority interest in Defy, the company formed last fall by the merger of Alloy Digital and Break Media.

Also read: Fullscreen Hires Former Viacom, Demand Media Execs to Make More Money and Shows

Defy and Viacom have also entered into a marketing and content syndication agreement to help Viacom's online properties reach Defy's active fan base.

"We formed DEFY with the belief that our infrastructure and brands represent the strongest platform in digital media for reach and scale to the 13-34 year old audience and with Viacom's partnership we now have additional assets and support to fulfill that vision," Defy Media CEO Matt Diamond said in a statement. "These outstanding brands represent meaningful and diverse revenue opportunities we aim to expand across our existing brand portfolio."

The post Defy Media Sells Minority Stake to Viacom in Exchange for Its Gaming Companies appeared first on TheWrap.

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