There’s a lot that goes on after a company decides to shut down suddenly. That’s the takeaway from this report by The Verge that looks into the claims by a handful of YouTubers that Defy Media still owes them money following its closure last month. Defy, like other YouTube networks, helped arrange deals connecting advertisers and creators, taking a percentage of each deal.
Some creators, like those behind Smosh, which sold to Defy a few years ago, bemoan that their stock in Defy is now worthless.
These types of complaints crop up frequently when a company shuts down and uses what cash it has left to pay off debtors—and often goes on long after the day the doors close for good. Defy had taken on some debt, so it’s possible that there may not be enough cash left to cover all of what Defy owed. It’s a sad ending for the world of YouTube networks that seemed so promising five years ago.