Explaining the Valnet legal controversy

Online journalism has seen much change compared to how things were before. Whereas before things were more televised or reported through newspapers and the radio, now everything happens through articles on the internet. Those who have been on the internet for long enough must have likely seen the likes of Game Rant, Screen Rant, The Gamer, Dualshockers, XDA Developers, and more.

What many don’t know is that all of the aforementioned websites are under the same umbrella of a company called Valnet. With a history of partaking in questionable acts and a present that’s filled with accusations of the company treating its freelancers like sweatshop workers to churn out content, Umberto Gonzalez of TheWrap ^[1] released a detailed expose on the company’s founder that prompted discussion throughout the internet.

Here’s everything to know about the ongoing Valnet drama and what it means about the legacy of the company.

The rise of Valnet: From porn to digital media empire

Hassan Youssef, the founder and CEO of Valnet, has built a digital empire that spans from adult entertainment to mainstream media. Born in Quebec to Lebanese immigrant parents, Youssef’s journey began in the world of online porn. Alongside his brother Sam and others, he co-founded Brazzers, a high-profile adult entertainment brand, and played an essential role in the early days of Pornhub. Their success was thanks to their mastery of SEO and web traffic arbitrage.

After selling their adult entertainment assets in 2010, the Youssef brothers went towards mainstream media, launching Valnet in 2012. The company grew into a powerhouse, getting popular fan-facing websites like Screen Rant, Collider, MovieWeb, and CBR. Valnet has over 260 million monthly page views over its portfolio, driven by a strategy prioritizing mass content production and SEO optimization over journalistic quality.

The freelancer exploitation controversy

Valnet’s business model relies on freelance writers, many of whom have accused the company of exploitation. Former contributors describe a system where writers are paid as little as $15 to $30 per article without benefits or job security. Rates have plummeted since Valnet’s acquisitions. For example, Collider’s freelance rate dropped from $250 per article to $40, and even that’s only for those who are part of the contracted team. Writers are forced to produce multiple articles daily, with little regard for quality or originality.

The company’s treatment of freelancers has sparked outrage, with one former contributor calling Valnet “one of the worst journalism publications I’ve ever seen.” Another describes the environment as a “content mill, borderline like almost sweatshop-level,” where writers are overworked, underpaid, and easily replaced. Editors also face high quotas and understaffing, creating a toxic work culture.

The freelancer blacklist

Valnet’s tactics to maintain control over its workforce include a controversial blacklist. The Wrap obtained a spreadsheet titled “2025 Blacklisted Freelancers,” which includes over 400 names. Valnet blacklists writers for reasons ranging from criticizing pay rates to discouraging others from working for Valnet. The company banned a freelancer for suggesting that payment information be included in the job listing, while others were punished for speaking out.

The blacklist draws criticism, with former contributors accusing Valnet of creating a culture of fear and retaliation. By silencing disagreements, the company ensures a supply of freelancers who stay compliant and willing to accept low pay and poor working conditions.

Legal troubles

Valnet’s exploitative practices have caused legal trouble for the company. Former MovieWeb writer Daniel Quintiliano has filed a lawsuit alleging oppressive work conditions, including failure to pay minimum wage, overtime, and business expenses. Quintiliano’s complaint states that Valnet’s control over freelancers’ work is inconsistent with independent contractor status under California law.

The lawsuit seeks $40,000 in damages, but the potential for a class action worries Valnet. To prevent further legal action, the company has offered freelancers $100 to sign releases waiving their right to participate in class action lawsuits. Few people have accepted the offer, forcing the company to increase the payment to $200.

The Hollywood push

Despite its controversies, Valnet is seeking credibility in Hollywood. In March 2024, the company hosted a red carpet event at The Grove in Los Angeles with popular composer Hans Zimmer. The event was part of the launch of music divisions in Collider and Screen Rant, communicating Valnet’s attempts to increase its influence in the entertainment industry.

However, Valnet’s reputation for exploiting writers and opting for clickbait over quality journalism might impact its efforts to obtain respect in Hollywood. Critics argue that the company’s focus on SEO-driven content undercuts its ability to produce meaningful or original work.

The legacy of Valnet’s origins

Valnet’s roots in the adult entertainment industry continue to shape its approach to digital publishing. The Youssef brothers’ success in porn was due to their ability to dominate search rankings and control web traffic, a strategy that they have replicated in mainstream media. Although this approach has provided Valnet with financial success, it has led to widespread criticism of its treatment of writers and the quality of its content.

As Valnet expands its portfolio and looks for legitimacy in Hollywood, the company goes through mounting scrutiny over its labor practices and ethical standards. Whether it can overcome these challenges and reach its goal of becoming “the greatest content and digital investment company the world has ever seen” remains to be seen.

How has the internet responded to these allegations?

No representative of Valnet has come out to make an official statement on the matter. Every website and individual related to the company is continuing to use social media as they regularly would, suggesting they’re trying to sweep the entire thing under the rug.

On the other hand, the general internet has seen much outrage over the matter. Multiple freelancers have come out to speak on the matter and share their experience working for Valnet. Some say they were let go of the company because they said or did something that went against the company’s wishes, whether it be defending someone or complaining about general pay, others talk about how they hate the content the website churns out.

With a focus on quantity over quality, most Valnet websites churn out content without regard for how it benefits the readers. Many freelancers are asked to write content that gets them clicks through rage bait, which many believe goes against journalist integrity. 

FAQs

What is the recent controversy involving Valnet?

Valnet has been criticized for issuing cease-and-desist letters to independent publishers, alleging defamation and demanding the removal of content discussing Valnet's business practices. Critics view these actions as attempts to suppress free speech and legitimate criticism.

What are the potential implications for independent journalism?

Valnet's legal threats could set a precedent that discourages independent journalists from reporting on corporate practices. This situation highlights the need for clear legal protections to ensure that journalists can operate without undue pressure from powerful companies. 

References

1. [1] "TheWrap's article on Valnet". www.thewrap.com. Retrieved March 23, 2025