Sup you beautiful bastards, hope you’re having a fantastic Thursday Welcome back to the Philip Defranco show and a quick note before we get started This morning if you didn’t see, we posted a brand new morning deep dive I saw some of you say you didn’t get your notification, they didn’t show up in your subscription so be sure to check it out it’s a really good one but, as far as this PDS, let’s just jump into it And the first thing we’re going to talk about today is it’s massive industry news but it’s just massive news in general. As you may recall, over the past few months we’ve talked about Defy Media a few times. They’re a massive MCN, the owners of Smosh, Clevver, AWE me, among others, And it was massive news when at the end of the year, seemingly out of no where, they just announced, it was over. We were seeing reports that on January 2nd they would be shutting down they would be laying off 80 people on their staff and the reaction from many especially those that had been involved, is “how the hell did this happen”? One of the last times something was reported about the company before this was that they got 70 million dollars in investment, and all of a sudden you had channels that seemingly were homeless, didn’t have support systems in place, people wondering where their money was and today we got a massive update from MatPat aka the game theorist – and in part I’m covering this not only because I think it’s important, I think it is interesting, but because MatPat himself put out a request for others to talk about it. One of the biggest revelations in his video, was this: “Collectively, us 50 had 1.7 million dollars stolen from us… 1.7 million dollars. And you can also tell in this video it’s not just the money, although that is important, you can see that he feels personally betrayed “And if that wasn’t bad enough, in my case, it was taken by someone who I thought I knew. Someone who I thought I could trust. Someone who only weeks after giving birth to Oliver hopped on the phone with Stephanie and I and lied directly to faces knowing full well that he intended to take our money but, oh no, he’s going to offer us some newborn advice.” He then goes on, talking about the questionable way that they ran their business, also giving a background on how some MCNs work essentially how part of their whole business structure is make themselves seem bigger or more profitable than they actually are. Right, if you don’t know it’s been common practice for MCNs to take a slice of money that you make from AdSense, part of the money you make from ad deals, and then they pay you out, so on their books the gross amount of money that they are making is huge even if their only keeping a little bit. But MatPat goes on to say they even did other kind of shady stuff to make their bank account seem bigger: “Defy even asked us if they could delay paying us our AdSense for a month we didn’t know why they asked, but we wanted to be a good partner so we said sure. We found later, and by later I mean recently, that they kept the money to make their books look better for the investors.