Scripps Buys Newsy For $35M To Expand From TV And Newspapers To Digital Video
Another exit for a new media startup into the arms of the old media industry: E.W. Scripps, the storied owner of 19 local television stations and daily newspapers in 13 markets across the U.S. …
Context & Ripple Effects
This is the second time E.W. Scripps has bought its way into consumer digital media: the broadcaster paid just $4.7 million for the photo/video sharing service Pickle back in 2007, when keyword competition was already squeezing such startups, and in late 2009 it touted a digital publishing venture reaching a claimed 144 million-plus audience. Newsy, at $35 million, is an order of magnitude larger than either move.
The pickup was unusually broad for a deal of this size — Scripps itself plus VideoNuze, Gigaom, Adweek, Multichannel and others all carried it on the day — reflecting how closely media watchers track legacy owners of 19 TV stations and 13 newspaper markets buying short-form video news built for phones and tablets. TechCrunch frames it as one more 'quasi-exit': a new-media startup selling into old media rather than to a tech acquirer.
First-order effects
- Newsy's founders and backers get their exit at $35 million, while Scripps gains a multi-platform digital video operation it can run alongside its broadcast stations instead of licensing someone else's content.
- Scripps' advertisers and affiliates now have access to video inventory distributed on mobile and connected devices, not just scheduled local broadcasts.
Second-order effects
- Rival local-station groups watching this deal face pressure to buy or build their own over-the-top and mobile video news products before audiences drift further from appointment viewing.
- Other independent short-form video news startups become more legible acquisition targets for broadcasters, with Scripps' price point setting a reference valuation for the category.
Third-order effects
- If the pattern holds, local broadcasting consolidates around diversified media portfolios — station groups becoming multi-platform news companies whose growth assets are acquired digital properties rather than new licenses or launches.
- The 'quasi-exit' route reinforces a structural divide where consumer-facing media startups increasingly sell to incumbents seeking audience transition insurance, narrowing the set of independent digital news brands.
The trend: Legacy broadcasters are acquiring small digital-native video news startups as the audience shifts away from scheduled TV, turning station groups into multi-platform buyers.