Published Date : Dec 10, 2013
E.W. Scripps, one of America’s oldest media groups, is all set to buy out Newsy, a new media startup. The latter, that became popular as a digital video news platform, has been picked up for a sum of USD 35 million in an all-cash transaction by E.W. Scripps that owns 19 television stations and news dailies that operate in multiple markets in the U.S. With this acquisition, Newsy is all set to become an E.W. Scripps subsidiary. According to officials from the media giant, the deal is anticipated to be completed over the next two weeks, around January 1.
Newsy has come a long way from being a startup that was founded in 2008 that managed to raise USD 5 million. And with this big ticket buy out, the company has indeed made an impressive exit.
On the other hand, this acquisition spells a new phase in the history of Scripps that had offloaded its digital news entity (the multi-million dollar Scripps Interactive) in 2007 and had chosen to retain its standing as a publishing house. Today, the acquisition of Newsy marks the culmination of a carefully-planned strategy over the last few years to make its presence felt in the digital news domain.
Founded in 1879, E.W. Scripps currently owns well-established online, television and newspaper properties and will now own a digital video asset to bridge these three domains. In addition to expanding their footprint in the American media sector, the acquisition of Newsy will also give the company access to a completely new set of audience using new-age platforms such as mobiles and tablets to consume news.
The chairman of Scripps, Rich Boehne said that the company is adding an important dimension to its video news strategy by buying Newsy. Currently, Newsy has a healthy mix of content delivery channels such as connected television, mobile, web, and tablet. Besides directly delivering content to audiences, it also has partnerships with the likes of AOL, Microsoft and Mashable.