Alloy Digital To Buy DBG, Extends Market Reach

Keeping its promise to grow through acquisition, Alloy Digital -- the youth-focused media company and video network -- just agreed to buy Digital Broadcasting Group for an undisclosed sum.

Per the deal, Alloy is getting a portfolio of in-stream video partners across roughly 2,600 publishers, a syndicated video player named CLiP and a suite of pre-roll ad units.

The combined assets also provide Alloy with access to new categories, including sports, tech, health and travel, as well as extending its market reach beyond its core audience of 12-to-34 year olds.

DBG CEO and co-founder, Chris Young, along with co-founders Rick Kleczkowski and Joseph Gomes, plan on joining the Alloy Digital leadership team -- with Young heading marketing as Chief Marketing Officer.

“With growing market demand for contextual video programming and targeted pre-roll, we are energized to bring our clients and partners a nimble new model,” Young said. In March, upon raising $30 million from ABS Capital Partners, Alloy vowed to continue its ongoing acquisition strategy.

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Alloy is perhaps best known as the owner of Smosh -- the madcap sketch-comedy brand Alloy acquired for an undisclosed sum in 2011.

Since its 2005 debut on YouTube, Smosh has racked up more than 2 billion views and 6.8 million subscribers, according to channel tracker VidStatsX. Forbes recently estimated that the brand raked in about $10 million in ad revenue, last year.
 
As Alloy executives have admitted, however, the success of Smosh is difficult to replicate. That is why it is so important for the company to remain aggressive with regard to asset acquisitions.

Along with Smosh, Alloy made several acquisitions in 2011, including online entertainment news producer Clevver Media, and Generate, a full-service studio and talent management company.

With Digital Broadcasting Group, Alloy says it will now reach nearly 80 million unique monthly viewers -- and deliver over 1.5 billion monthly streams -- citing comScore data.

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