By Sahil Patel
Short-form news video startup Newsy has been acquired by E.W. Scripps for $35 million as the broadcasting and publishing conglomerate looks to make more investments in digital media.
Newsy is one of a few growing companies specializing in producing short-form news video content, which it then distributes to a variety of platforms and syndication partners. In some cases, the company produces original content for online publishing partners like MSN and Mashable. The company derives most of its revenue from ads sold against the content, as well as those publisher and syndication partnerships.
For EW Scripps, the deal makes a lot of sense. The company runs a network of local television stations (19) and daily newspapers in 13 markets in the US. With Newsy, Scripps now has a digital video news arm which can not only produce original content for these local outlets, but also give Scripps a national online news brand to build out.
Rich Boehne, chairman, president, and CEO of Scripps said as much in a statement, calling the Newsy acquisition as adding “an important dimension” to Scripps’ video news strategy. “This acquisition fits our digital strategy to run a national news brand that both enhances our local content offerings and gives us more access to the fast-growing digital news audiences and revenues on national platforms,” he said.
It should be also noted that even though Newsy isn’t a YouTube-based media company, this is another instance of a large traditional media business buying a digital video upstart. Consolidation isn’t restricted to those making money on the world’s biggest video site.
Per the deal, Newsy will run as wholly owned subsidiary of Scripps. Newsy’s 35 full-time employees, as well as numerous part-time staffers, will stay with the company. The deal is expected to close January 1.