TV, print and digital media firm the E.W. Scripps Company has agreed to buy US-based video news startup Newsy for US$35 million (€25.5 million) in a bid to make a push into the digital video business.
Commenting on the deal, Scripps chairman, president and CEO Rich Boehne said that “Newsy adds an important dimension to our video news strategy” and that the curation and storytelling brand “fits well with both our current media assets and our ambitions to further develop digital media businesses.”
“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,” said Boehne.
Newsy produces and curates video news reports for the web, mobile devices, tablets and connected TVs. The five-year old start-up, which is based in Missouri, makes revenues from advertising and from selling and syndicating content to digital brands including AOL/Huffington Post and Microsoft.
Scripps, which owns TV channel brands including HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel, said that Newsy will be operated as wholly owned subsidiary of Scripps. The deal is expected to close on January 1.