Alloy Digital, a creator and distributor of high-quality online video content, has acquired the full service studio and talent management company Generate, creating a new multiplatform media company that will target the younger 12-34 demo.
Terms of the deal were not disclosed. Alloy Digital is an affiliate of Alloy Inc.
"The addition of Generate to Alloy Digital firmly places us in a unique position offering expanded and vertically integrated capabilities that will create significant value for our advertisers and consumers, as well as the creative community and potential partners," noted Matt Diamond, the CEO of Alloy Inc. in a statement. "With this transaction, and with the strength of our combined management teams, we are now the leading next generation media company mirroring the best of both old Hollywood and the new digital era: cost-effective development and production, talent management, distribution, ad sales, social media and promotion all under one roof."
In addition to Generate, Alloy Digital recently acquired Smosh (www.smosh.com), which is the third-most subscribed channel on YouTube. "We look forward to continued content and technology acquisitions that will increase our viewership and our effectiveness with advertisers," Diamond explained in a statement.
In announcing the deal, the companies noted that Alloy Digital controls the largest media and advertising network of young adult targeted websites, reaching over 43% of internet users aged 12-34 internet users and that the division has posted annual organic revenue growth surpassing 40%.
Overall, Alloy Digital attracts more than 70 million consumers each month, delivering several hundred million month streams. It has ranked top in its category for nearly three years running, according to industry measurement leader, comScore. The company also owns the third-most subscribed to channel on YouTube.
It also creates digital ad campaigns for a variety of major companies.
Generate, which was launched in 2006, works with advertising, technology and entertainment companies to create customized branded content and produces fiction and factual entertainment for a variety of distribution outlets at its in-house studios. It has offices in offices in Santa Monica, Calif., and New York City.
Generate also operates a talent management division that has experienced significant growth in recent years.
"Combining forces with Alloy Digital is the next logical step for both companies," noted Generate CEO Jordan Levin in a statement. "We have every confidence that collectively we will continue to build a powerful, platform agnostic, digital-centric engine designed to meet the creative and economic needs of consumers, brands and talent while, at the same time, driving significant growth and positive financial performance."
Prominent senior management of Generate will assume leadership positions within the newly consolidated company in the months ahead. Levin, who previously served as CEO of The WB Network, will join four of Generate's early partners at Alloy: Generate Studios' president Peter Aronson, former head of Regency Television and creative affairs for Disney Television; head of branded content Jared Hoffman, former CAA literary agent and brand strategist; and two of well-known talent managers, Dave Rath and Kara Welker.