Variety is reporting that The Escapist and Warcry parent company Alloy Digital and GameFront parent company Break Media (who also owns Break.com) will soon announce a merger of the two properties under a new 50-50 partnership. The new company will be called Defy Media. Variety claims that Defy Media will focus on creating video content aimed at the 14 - 34 year-old mostly male demographic.
Alloy Digital owns Smosh, The Escapist, Warcry, and a number of other video heavy properties and claims to reach more than 95 million unique users per month. Break Media, which claims to reach over 70 million unique monthly visitors, owns comedy site Break.com and GameFront.
Speaking to Variety, an Alloy Digital rep. told the publication that the merger will officially be announced next Tuesday. Variety adds that the new company will have more than $100 million in annual revenue and will be profitable.
Alloy Digital's current CEO, Matt Diamond, will become CEO of Defy Media, while Break Media's Keith Richman will assume the role of president.
How this merger will affect staff at both companies remains to be seen, but at least one person won't be part of the new company: GameFront Editor-in-Chief Mark Burnham. Burname confirmed via Twitter that he would be leaving the publication at the end of the month.