Newsy Sold to E.W. Scripps for $35 Million in Cash
Company will operate as a wholly owned subsidiary.
The E.W. Scripps Company has acquired five-year-old online video news site, Newsy. Scripps discloses that it has agreed to pay $35 million in cash and the deal is expected to close on January 1.
Scripps CEO, Rich Boehne indicates that Newsy will be a big part of the company's video strategy moving forward. "Newsy adds an important dimension to our video strategy," he says in a release. "Newsy's uncommon approach to curation and storytelling has helped it build a strong national brand, which fits well with both our current media assets and our ambitions to further develop digital media business."
Newsy was launched as a Web-based product, but it is now also accessible through mobile apps and internet-connected TV devices like Roku. It generates revenue through advertising, custom content and syndication. And Scripps plans to appropriate the digital model for its regional markets across the U.S.
As of today, Newsy employs 35 full-time staffers plus and an undisclosed number of part-timers. Scripps maintains that these employees will remain with the company.
Jim Spencer, founder and CEO at Newsey, says in a release that the pairing is a choice fit, "Leveraging the power of Scripps and Newsy together means reaching more consumers with the quality of journalism they expect on a larger variety of platforms." Adding that the two companies share "values of innovation and editorial integrity."