Alloy Digital, the company behind YouTube’s young-adult oriented SMOSH and Clevver Media networks, last month received $30 million in Series A financing from ABS Capital to fuel growth and already is putting it to use. The companies say the deal to acquire Digital Broadcasting Group‘s video syndication network will give Alloy a reach of nearly 80 million unique viewers monthly and deliver more than 1.5 billion monthly streams. Here’s the release:
(New York, NY) April 17, 2013 – Alloy Digital, LLC (“Alloy Digital” or the “Company”), a leading next generation media company, recognized for its portfolio of top-ranked content brands and proprietary networks, today announced that it has signed a definitive agreement to acquire Digital Broadcasting Group (“DBG”), one of the foremost distributors, creators, and producers of premium content and video advertising across digital media platforms. The transaction creates a powerful digital force by combining DBG’s massive video syndication network with Alloy Digital’s top-ranked digital distribution network, which includes some of the most popular digital entertainment brands.
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Here’s more financial fuel for the company behind YouTube’s young adult oriented SMOSH and Clevver Media. Alloy Digital CEO Matt Diamond says the cash will enable his company to “rapidly accelerate future growth by adding complementary, relevant properties and talent.” ABS Capital Partners General Partner Deric Emry — who just joined the Alloy board — adds that the Series A financing is “an extremely attractive investment opportunity” partly because digital media are growing so quickly. Since there’s still “an imbalance between time spent online and dollars spent by blue-chip advertisers,” ABS foresees “a significant opportunity for future growth as multi-platform media formats are expected to grow at a much greater rate than television.” In January Alloy announced that SMOSH had become the No. 1 YouTube channel measured by subscribers.
Keep an eye on Alloy Digital if you believe that YouTube’s becoming an interesting breeding ground for online information and entertainment. Alloy’s been snapping up properties lately as it seeks to dominate media targeted to teens and young adults. Last year it acquired SMOSH, and this year it bought Generate, B5 Media, and Clevver Media. And today it clarified its plans to attract gamers, a key part of the company’s audience. It’s blending ClevverGames into a new channel called SMOSH Games. Alloy appears to believe that the SMOSH platform, which has 7M subscribers, will provide a jolt to the solid, but not dominant, gaming channel. Launched in April 2011, ClevverGames had about 100,000 subscribers. (Note: It isn’t funded by Google, so you won’t find it on Deadline.com’s weekly ranking of YouTube channels.) Alloy vows to cross-promote SMOSH Games across its websites and YouTube channels which include Clevver News, Clevver TeVe, and Shut Up! Cartoons.