Old media and new media are colliding in E.W. Scripps’s $35 million acquisition of Newsy, a five-year-old startup that specializes in supplying ad-supported curated digital video news for browsers, smartphones, tablets, smart TVs and other connected devices.
Scripps, which owns 19 local television stations and daily newspapers in 13 U.S. markets, said Newsy will become a key news source for digital products in local markets across the country.
It added that Newsy will become wholly owned subsidiary, and that Newsy’s 35 full-time employees and its part-time employees will remain in Columbia, Mo. The deal is expected to close on Jan. 1, 2014.
"Newsy adds an important dimension to our video news strategy. It's a next-generation news network designed and built exclusively for digital audiences," said Rich Boehne, Scripps chairman, president and CEO, in a statement. "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 businesses.”
AOL/Huffington Post, Microsoft and Mashable are among Newsy’s distribution partners. Mediacom Communications struck a partnership with Newsy back in 2009.
Newsy claims that its produces about 1,500 videos per month, and that its platform generates 100 million unique video views per month.