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Jellysmack Takes a New Course
SoftBank-backed [Jellysmack](https://www.businessinsider.com/how-creator-economy-startup-jellysmack-lost-its-way-2024-5), a significant figure in the creator economy, has embarked on a fresh venture. Recently, the company decided to spin off part of its original content business into a newly minted entity. This change marks another chapter for the startup, which has been navigating a series of strategic shifts and layoffs in recent times.
The Rise of Blue Foxes
Enter Blue Foxes, a new name but with familiar faces at the helm. Former Jellysmack Originals VPs, Maxime Horbez and Paula Layoun, are steering this ship. The new entity is set to manage several of Jellysmack’s social brands, including their [YouTube](https://www.businessinsider.com/youtube) channels, Snapchat accounts, and [Facebook](https://www.businessinsider.com/facebook) pages like Beauty Studio, Oh My Goal, Gamology, and House of Bounce.
In February 2024, Blue Foxes enjoyed a launch party in Paris. “Though it has a new name and logo, ‘everything else stays the same,’” noted Horbez on [LinkedIn](https://www.linkedin.com/posts/maxime-horbez_jellysmack-originals-becomes-blue-foxes-activity-7292131247722496000-avuj/).
Strategic Refocus
Michael Philippe, Jellysmack’s co-founder, confirmed the spin-off and expressed happiness about the continuity of the original content team. Meanwhile, Jellysmack will continue managing the Law&Crime Network, acquired in 2023. Philippe stated that the company plans to focus more keenly on U.S.-based intellectual property and YouTube.
Financial Backing and Challenges
Jellysmack made headlines by securing a nine-figure investment from SoftBank back in 2021. It was a period when creator economy startups were hot in the eyes of venture capitalists. However, the landscape since then has cooled considerably. The company, which once employed over 1,000 people, has faced multiple rounds of [layoffs](https://www.businessinsider.com/creator-economy-startup-jellysmack-laid-off-us-france-staff-layoffs-2023-5), reflecting a broader trend in the industry.
The State of the Creator Economy
The creator economy has seen its fair share of turmoil. Between 2020 and 2023, interest peaked, but now startups are either consolidating or winding down. Some, like Jellysmack, have sold off divisions to focus on core profitability. For instance, the company sold its catalog-licensing business in March 2024, aligning with this new strategy.
A Look Ahead for Blue Foxes
Blue Foxes appears to be off to a promising start. With many staffers transitioning from Jellysmack, the team is ready to chart new waters. As the industry continues to evolve, the company plans to leverage its established social media brands while exploring fresh opportunities.
While the road ahead is uncertain, Blue Foxes’ leadership remains optimistic and ready for this next chapter. Time will tell how this spin-off will navigate the shifting tides of the creator economy.
