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Alloy and Break Merge, Forming Defy Media

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Online video advertising isn't the only industry caught up in a wave of consolidation and acquisition: so is the content side. Alloy Digital and Break Media are merging, forming new company Defy Media. The merger follows six months of negotiations and involves no exchange of money or stocks; the companies are joining as equals. Variety reports that the official announcement should follow on Tuesday.

The new company will be led by Alloy's CEO Matt Diamond, who will take the CEO role. Break's CEO Keith Richman will become president.

The purpose of the merger, AdAge suggests, is to create a larger pool of viewers to attract TV advertising. Alloy is stronger on YouTube and has more female viewers; Break is stronger off YouTube and has more male viewers. Both companies appeal to a younger demographic. Alloy is based in New York City and has roughly 200 employees, and Break is based in Los Angeles with 170 employees.

While the merger should result in some layoffs due to redundancies, AdAge speculates that the sales teams will be safe as they'll be needed to sell ads. The new company should take in $100 million each year, people involved with the merger claim.

In August, Maker Studios made news by acquiring Blip, a deal that closed in September, reportedly for under $10 million in Maker stock.

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