Wednesday, April 13, 2016
Demand Media Unloads Cracked For $39M
Santa Monica-based Demand Media has sold Cracked, its online humor site, to the E.W. Scripps Company, in a deal worth $39M in cash, the companies said late Tuesday. According to Demand Media, the move will give it a "more focused portfolio of businesses", and also "significantly" strengthen its balance sheet. Demand Media acquired Cracked in 2007. The sale comes as Demand Media has been seeing a steep drop in revenues from its content businesses. Scripps said that Cracked had revenue in 2015 of approximately $11 million and was profitable; Cracked originally was a magazine of the same name, founded in 1958.