E.W. Scripps Co.acquired Santa Monica, Calif.-based multiplatform satire brand Cracked for $39 millionin cash from Demand Media Inc.
Launched in 1958 as a humor magazine, Cracked has nearly 40 employeesand generated revenue of about $10.9 million in 2015. Demand Media, which purchasedthe Cracked property for less than $1.0 million in 2007, expects to use its existingnet operating losses to offset the gain resulting from the sale of the Cracked business.
"This transaction leaves Demand Media with a more focusedportfolio of businesses, significantly strengthens our balance sheet, and positionsus to drive profitable growth moving forward," Demand Media CEO SeanMoriarty said in an April 12 statement.
The Cracked team will continue to operate out of its Santa Monicaoffices and will be led by Mandy Ng Rusin, general manager and vice president, andJack O'Brien, vice president and editor-in-chief.