Smosh: Anthony Padilla and Ian Hecox reunite to acquire YouTube brand from Rhett & Link - sale explained

One of YouTube's biggest and oldest channels Smosh has undergone a major ownership change for the second time in four years after it was bought back by co-creators Anthony Padilla and Ian Hecox to mark a new chapter for the comedy brand.

The once-estranged pair reunited to commandeer a majority stake from Mythical Entertainment, the production company of talk show stars Rhett & Link. It had acquired Smosh in a rumoured $10 million deal in 2019.

Padilla and Hecox have not been seen in public or on-screen together since the former left Smosh - citing loss of creative inspiration - and branched out on his own in 2017. Hecox has remained at the brand and was forced to deal with the implications of then-parent company Defy Media's collapse and Smosh's revitalisation under Rhett & Link.

By the time of Padilla's departure, their friendship was understood to be "really not that good" as they struggled with communication. Now after reconnecting just last year and "really hitting it off", a reunion has been rubber stamped.

Speaking about the sale, Rhett McLaughlin said in a statement: "The spirit of buying Smosh is sort of mirrored in the spirit of selling Smosh, neither of these opportunities was something we were actively pursuing. We always secretly hoped they would get back together, we have a soft spot for internet duos.

"Just seeing them talk to one another and get excited about working together, we want to continue to be involved. The fact that their fans are going to be so excited, I don’t know that that would be the case if there weren’t creators on both sides of this. We see them starting to level up."

Link Neal added: "I feel like the four years we’ve had with Smosh under our wing and, literally, under our roof was preparation of this. Their fans always wanted to see them get back together. But we weren’t, as the owners of Smosh, going to push that".

Smosh was first formed in 2006 and has since gone on to garner over 10 billion views on its main YouTube channel, as well as having around 25.1 million subscribers. Other channels include Smosh Gaming and Smosh Pit which boast more than 7 million subscribers respectively

Here is everything you need to know about the sale of Smosh; including what has been said and what it means for the popular YouTube comedy collective.

How much was Smosh acquired for?

Terms of the deal to acquire Smosh from Mythical Entertainment have not been officially disclosed. According to the production company, Mythical "realised a significant multiple of its original invested capital" and retain a minority stake in the comedy brand.

Anthony Padilla and Ian Hecox have gone through creator capital provider Breeze Financial to finance the acquisition.

What does the Smosh sale mean?

Rhett McLaughlin and Link Neal will remain involved with Smosh in advisory roles, but the new ownership structure sees Daniel Tibbets, the brand's CEO, and Joel Rubin, the EVP, leave the company.

Tibbets said in a statement: “The Creator Economy is about individuals having the power to build a lasting brand in which creative and business acumen are driven from the creators themselves. I am thrilled to see Ian and Anthony take back control of the brand they created 18 years ago".

Smosh's core on-screen talent will remain, which includes Shayne Topp, Courtney Miller and Damien Haas. It will continue to operate out of its 17,000-square-foot Burbank studio space.

In terms of what the acquisition means for content, Padilla and Hecox will reboot the main channel with their own sketches, as well as maintaining the usual formats and release cycles for Smosh's other channels. The duo will also launch a subscription-based membership system that will allow viewers to pay a fixed monthly fee to gain access to exclusive bonus content.

When will Anthony Padilla and Ian Hecox's first Smosh collaboration be?

The internet duo are excited to get back to work together and will star in a number of comedy sketches, as well as returning to write and direct other Smosh content. Padilla and Hecox's first collab in more than six years will hit the main YouTube channel on 30 June and will release a comedy video once every two weeks.

In a statement, Padilla added: "I really want to return to our roots, and part of that is owning the company so we can really take Smosh in any creative direction".