US newspaper publisher Gannett is hoping to bolster its digital business after acquiring social media company Ripple6 for an undisclosed sum.
Based in New York, Ripple6 provides white label social networks and in-house technical services for digital businesses. The firm will become a subsidiary of Gannett's but will continue its partnerships with other web publishers, including Procter & Gamble, Meredith and General Mills.
As part of the transaction, Gannett bought the 10% share owned by Chris Saridakis, Gannett's senior VP. He did not, however, participate in the sale negotiations, says the company.
Ripple6 began working with Gannett in March, when Ripple6 was hired to provide about USD2.2m of computer programming services related to Gannett’s strategic plan initiatives, according to paidContent. It also publishes Gannett's MomsLikeMe.com sites, which recently rolled out in 80 local markets across the country.
Gannett is hoping to increase revenues from its digital properties as declining ad revenues hit its print publications. The company owns properties such as PointRoll and ShopLocal, and last month it acquired health and education site PearlsReview.
In October, the firm announced plans to cut 10% of jobs across its network of newspapers, blaming the cuts on a 32% profit drop in Q3.
StrategyEye's related companies: Ripple6, General Mills, Gannett Co., Inc, PointRoll, Meredith Corporation, Procter and Gamble
