College drop-outs turned YouTube pioneers. Sketch comedy. An ill-advised acquisition. The (almost) downfall of a beloved comedy brand. The Smosh story has it all.
Founded 19 years ago (yes, really,) Smosh is an OG YouTube channel that has experienced its fair share of turmoil over the years. But what happened to this iconic channel? And where are its founders now? Let’s investigate.
What is a “Smosh”? And why are they popular?
Founded in 2005 by childhood friends Anthony Padilla and Ian Hecox, Smosh is one of the best-known YouTube channels of all time. Seriously — Smosh has over 26M subscribers and has enjoyed not just one but three periods as the most-subscribed channel (in 2006, 2008, and 2013.)
While the duo experimented with content over the years, they’re best known for their comedy skits. It’s no surprise that their most-watched video, with 108M views, is a parody ad for a beef product you can eat on the go, appropriately named Beef ‘n Go.
This irreverent humor, laced with references to other internet memes, tapped into the 2000s zeitgeist, catapulting Smosh and its binge-able comedy shorts to fame in the online comedy world.
Smosh’s (almost) downfall
Sadly, the Smosh story isn’t all viral videos and epic memes. In 2011, Smosh was acquired by Alloy Digital (later Defy Media) for stock. This granted Padilla and Hecox access to the resources they needed to grow the channel to its full potential, and for a few years, everything seemed to be going great! The duo launched new channels and series, grew their cast, and even branched out into new areas like mobile apps.
Then, in 2017, news broke that shocked fans to their cores; Padilla decided to leave Smosh, citing a lack of creative freedom. As it turned out, having a parent company also meant letting go of full creative control over the channel you’d spent the past decade pouring your heart and soul into.
But the drama didn’t end there. In 2018, Defy Media suddenly shut down, leaving Smosh without a home. Padilla took this opportunity to reveal that Defy Media had been financially exploitative and that the stock Smosh sold for was never worth anything, as the company never went private.
How Smosh got its groove back
Thankfully for the Smosh crew and its ever-loyal fandom, Mythical Entertainment, founded by fellow YouTubers Rhett and Link, acquired the business in 2018. This move provided Smosh with the support it needed to get back on its proverbial feet and continue creating content.
And the story doesn’t end there! In 2023, two major twists shook the Smosh community in quick succession. First, Padilla would be rejoining the team. Second, Hecox and Padilla would be repurchasing a majority stake in their business in the “first creator-to-creator acquisition of its kind,” according to Rhett and Link.
18 years after Smosh first launched and 12 years after it was sold for worthless stocks, Smosh was once again an independent entity, allowing the duo to return to creating the type of content they wanted to produce all along. Oh, the nostalgia!
Our takeaway: to sell or not to sell?
There are many learnings creators like you can take away from this cautionary tale. But the most consequential is this:
When negotiating a business partnership, always take the time to understand the full implications — both positive and negative — for your brand.
The pros are extensive. Business partnerships, from brand sponsorships to full-scale acquisitions, are a great way for up-and-coming creators to access the financial resources they need to grow.
But as we’ve seen in the case of Smosh, financial support from a third party almost always comes with strings attached. Those investing in your business will expect to have a say in all content produced, as they have as good as purchased the right to veto ideas and guide strategic direction.
This creates a dilemma for creators and begs the question: What’s more important, gaining access to financial resources or retaining full creative control over your brand?
For more tips on how to choose your brand partners, check out our article on the topic.
