News Journal and (Salisbury) Daily Times owner Gannett Co., Inc. has taken a minority equity position in Billy Penn’s parent Spirited Media.
Terms were not disclosed
Spirited Media operates the mobile news site Billy Penn in Philadelphia. The site is aimed at younger readers who get most of their news on a mobile devices.
The investment will allow Spirited Media to expand its mobile-first approach in the Philadelphia market and launch into new local markets.
Gannett has a presence in neighboring Delaware with the News Journal, on Delmarva with the Daily Times and in southern New Jersey with the Courier Post.
“Gannett is pleased with its partnership with Spirited Media,” said Bob Dickey, CEO of Gannett. “The Spirited Media team has a proven track record of producing high-quality journalism and delivering engaging experiences for local markets. We look forward to working with Spirited Media as it embarks on its next phase of growth.”
“Gannett is the perfect partner for Spirited Media as we look to expand in Philadelphia and beyond,” said Jim Brady, founder and CEO of Spirited Media. “As we look to create new economic and journalistic models for local media, I can’t think of any better partner than Gannett as they share our passion for journalism and commitment to innovation.”
Spirited Media plans to leverage its successful business model in Philadelphia— a blend of original and curated content, a heavy social media presence, an active voice, and a focus on local events— in new local markets, a release stated.
“I am excited to leverage the model that has worked so well in Philadelphia,” Brady said. “The enthusiasm that young news consumers in Philly have shown for Billy Penn has been inspiring. I look forward to bringing that enthusiasm into new local markets.”
In less than two years, Billy Penn was named Philadelphia’s Startup of the Year at the 2015 Philadelphia Geek Awards, was nominated for a prestigious Online Journalism Award for its coverage of the Amtrak 188 disaster, was awarded a $106,000 grant by the Knight Foundation to produce a guide to mobile journalism.
Gannett, like other newspaper-based companies, has been looking for ways to reach a growing number of people who get their news on mobile devices and somehow convert those page views to advertising or circulation revenues.
While apps and mobile friendly websites are used by those readers, the company also operates a paywall that limits the number of views for those who do not subscribe to digital or print editions.
