The E.W. Scripps Co., which owns newspapers and TV stations, said Monday that it bought video news startup Newsy for $35 million to help it enter the digital video business.
Newsy collects news from newspapers, TV and websites to create video news reports that can be watched online or through its apps. It makes money from advertising and also sells its videos to news websites.
"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 E.W. Scripps CEO Rich Boehne in a statement.
Newsy is based in Columbia, Mo., and will remain there. The company was launched in 2008 and has 35 full-time employees.
E.W. Scripps, which is based in Cincinnati, owns 19 local TV stations and daily newspapers in 13 markets, including the Commercial Appeal in Memphis, Tenn. In its most recent quarter, it reported a loss as political ads declined.
Shares of E.W. Scripps fell 5 cents to $19.48 Monday.
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