The internet continues to evolve, and so does its consumers.
In a surprising move, Polygon, the popular gaming and entertainment website, is sold to Valnet, Inc., a Canadian media company founded by Hassan and Sam Youssef in Montreal, Quebec.
Amid advertising volatility following the pandemic, Vox Media started to shed and consolidate efforts to improve its balance sheet. The company spun out and conducted several rounds of layoffs. But the inevitable then happens: Vox Media, Inc. had to sell it.
With Polygon now joining Valnet’s gaming portfolio, known as The Valnet Gaming Group, which collectively reaches over 1.2 billion users annually, Polygon's presence aligns with Valnet’s long-term growth strategy.
The news that broke out stunned both the remaining outlet’s staff and its loyal audience.
The news was revealed during the time when multiple Polygon writers and editors went to social media to express their concerns and uncertainty after being laid off.
Those that were laid off, include co-founder and editor-in-chief Chris Plante.
While media layoffs have unfortunately become routine across the industry, gaming publications have been especially vulnerable, Polygon, however, was considered an exception, since it had cultivated a reputation for quality journalism, a strong video presence, and a newsroom that balanced professionalism with creativity—arguably more stable than many other digital-first media companies.
Created by Vox Media, a leading American digital media company founded in 2011, it owns a diverse portfolio of influential editorial brands, including Vox, The Verge, New York Magazine, Eater, SB Nation, and more. With an estimated annual revenue of $600 million as of 2023, Vox Media has raised approximately $307.6 million in funding over nine rounds, achieving a valuation of around $1 billion.
In 2023, Penske Media Corporation invested $100 million, acquiring a 20% stake and becoming the largest shareholder.
Despite industry challenges, Vox Media continues to thrive by focusing on quality journalism and expanding its podcast network, which has become its fastest-growing business line.
Vox Media is one of the few digital media holding companies from the 2010s that managed to remain independent.
And here, due to Vox Media's sheer reputation behind its back, a sizable staff and respected editorial team, practically nobody had no clue prior to the Polygon massive abrupt layoff.
At this time, Valnet media owns several entertainment sites including Screen Rant and Collider, as well as a number of video game sites like TheGamer, DualShockers, and Game Rant.
Valnet itself was founded back in 2003, when a foosball enthusiasts group that include Hassan and Sam Youssef, as well as Concordia University students Matt Keezer and Stephane Manos, saw an opportunity make a lot of money from the internet by distributing online pornography.
The friends started Jugg World, Ass Listing, KeezMovies, XXX Rated Chicks, as well as Mansef, considered as one of the first "thumbnail gallery post" websites for porn.
Eventually, they created a pay site called Brazzers— named after a private joke, a "throaty immigrant-Arabonics version of brothers."
Unlike Fabian Thylmann who founded and manages a long list of internet pornography and kept on acquiring porn on the web, Hassan and Sam Youssef diversified their portfolio to become a more general media.
While Valnet has lots in portfolio, and that acquisitions are common, the commotion happens because Valnet was built on the founders' previous success in the porn industry.
And acquiring Polygon has left many within the gaming journalism community reeling.
