How much is a top 10 YouTube network worth? Apparently between $5 million to $10 million. That's the range that Alloy Digital paid for YouTube powerhouse Clevver Media in a deal that closed Friday, according to a person familiar with the deal.
Clevver operates seven YouTube channels, which collectively ranked ninth in April among YouTube partner networks with 6 million unique viewers, according to Comscore. Clevver's flagship channel ClevverTV, a celebrity- and entertainment-news channel, boasts 460,000 subscribers, giving Alloy Digital 8 million subscribers across its YouTube properties. (Alloy Digital's Smosh YouTube channel has 4.8 million subscribers alone.) Three of Clevver's other channels received funding from YouTube recently as part of its original-programming initiative.
Clevver already was part of the Alloy Digital Network, which registered 29 million unique visitors in April, according to ComScore. As part of that relationship, Alloy previously sold ads and sponsorships for Clevver, splitting the resulting ad revenue with the company. Matt Diamond, CEO of Alloy Digital parent company Alloy Media + Marketing, said the acquisition should give Clevver the resources to expand the amount of video content it produces and ink more big sponsorship deals as it expands its portfolio web franchises.
Alloy Digital operates a variety of businesses that target the 12- to -34-year-old demographic with video content. In addition to the ad network, Alloy also produces and distributes custom video content for brands and -- as this acquisition shows -- is continuing to invest in increasing its presence on YouTube.
"People know us well as a large youth media company, but they haven't known us up to now as a large YouTube channel player," Mr. Diamond said.
All 28 Clevver employees, including co-owner and exec producer Michael Palmer, will join Alloy, which has 150 employees of its own.
Below, see a sampling from the channel.
Hear from Fortune 500 brands that have been forced to pivot as consumer preferences evolve, as well as entrepreneurs building brands from scratch to meet new consumer needs. This event peels apart the layers of brand building with a carefully crafted roster of top marketing, technology, and creative leaders.Learn more