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.
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