Demand Media Says It Finalized Sale Of Cracked To E. W. Scripps For $39 Million

Shares of Demand Media Inc DMD surged higher by more than 11 percent on Wednesday after the company announced it has completed the sale of its Cracked brand to E. W. Scripps Co SSP.

Demand Media said it has received $39 million in cash for the digital-media humor brand, which it acquired in 2007. The company added that the sale of Cracked better positions itself to enhance the quality of its products and improve the user experience on its other properties, including Livestrong.com, DIY (eHow), LEAFtv and Saatchi Art and Society.

"This transaction leaves Demand Media with a more focused portfolio of businesses, significantly strengthens our balance sheet, and positions us to drive profitable growth moving forward," said Sean Moriarty, chief executive officer of Demand Media. "Through Cracked's evolution it became apparent that it would benefit long-term from joining a media company with deep roots in the digital media landscape and a proven strategy for leading the way in over-the-top audio and video. Scripps is an outstanding organization and we believe the Cracked business and team will be well served under their new ownership."

Shares of E. W. Scripps were trading higher by more than 2 percent Wednesday afternoon.