Demand Media Acquires Saatchi Art, a Leading Online Art Gallery and
Hires Former Ticketmaster and Saatchi Art CEO
SANTA MONICA, Calif.--(BUSINESS WIRE)--
Demand Media, Inc. (NYSE: DMD) today announced the appointment of Sean
Moriarty as Chief Executive Officer and board director. A seasoned
executive, Mr. Moriarty brings 18 years of experience with media and
Internet companies, including Ticketmaster and Saatchi Art where he
served both companies as CEO. Shawn Colo, Demand Media co-founder and
Interim Chief Executive Officer has been appointed President and will
join the board of directors.
Sean Moriarty appointed Demand Media CEO. (Photo: Business Wire)
Prior to Saatchi Art, Mr. Moriarty was the CEO of Ticketmaster where he
led the transformation from an offline business to a top 5 global
Internet commerce company earning nearly $1.5 billion in annual revenue
with a presence in 22 countries. Prior to Ticketmaster, he worked 4
years as EVP of Product and Technology at IAC/Citysearch. Mr. Moriarty
serves on a number of boards including Eventbrite, Metacloud, TuneIn,
and the Pat Tillman Foundation.
“Sean is a proven leader and a strong operator with a broad range of
experience that is uniquely suited to our business,” said Shawn Colo,
co-founder and President of Demand Media. “I’m excited to be working
closely with him as we enter the next phase of the company’s future.”
Also announced today, Demand Media acquired Saatchi Online, Inc. which
operates Saatchi Art, a leading online art gallery. Saatchi Art is
driven by its global community of artists, similar to Demand Media’s
Society6 marketplace. Saatchi Art is home to more than 45,000 artists
selling their original work on the site. In the past six months, artwork
has been sold to buyers in 77 countries on behalf of artists in 95
countries.
“Demand Media is an innovative company with a passionate and creative
team. Our businesses are very well positioned in large global categories
that people care deeply about, including how-to, health and wellness,
humor, and art,” said Sean Moriarty. “I’m excited to work closely with
the team in fulfilling our vision of building an important, enduring
Internet company that serves creators and consumers.”
The company was acquired for total consideration of approximately $17
million comprised of a mix of cash and stock. In the near term, the
company expects this acquisition to contribute revenue of $0.5 million
to $1 million per quarter and reduce adjusted EBITDA by $1 million to
$1.5 million per quarter.
About Demand Media
Demand Media, Inc. (NYSE: DMD) is a leading digital content & media
company that informs and entertains one of the Internet's largest
audiences, helps advertisers find innovative ways to engage with their
customers and enables publishers and individuals to expand their online
presence. Headquartered in Santa Monica, CA, Demand Media has offices in
North America and South America. For more information about Demand
Media, please visit www.demandmedia.com.
Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended. Statements containing words
such as may, believe, anticipate, expect, intend, plan, project, and
estimate or similar expressions constitute forward-looking statements.
Forward-looking statements involve various risks and uncertainties and
statements regarding the Company’s future financial performance are
based on current expectations, estimates and projections about our
industry, financial condition, operating performance and results of
operations, including certain assumptions related thereto. Actual
results may differ materially from the results predicted, and reported
results should not be considered an indication of future performance.
Potential risks and uncertainties include, among others, our ability to
successfully integrate, manage, operate and grow Saatchi Art, the risk
that we may be unable to achieve revenue and EBITDA projections for the
acquired business, the risk that the acquired business or the
transaction carry contingent liabilities that could materially impact
our future results or our ability to realize the expected benefits of
the transaction, and the risk that former stockholders of Saatchi Online
may seek to assert claims relating to the transaction. Additional
information about potential risk factors that could affect our operating
and financial results are contained in our annual report on Form 10-K
for the fiscal year ending December 31, 2013 filed with the Securities
and Exchange Commission (http://www.sec.gov)
on March 17, 2014, as such risk factors may be updated in our quarterly
reports on Form 10-Q filed with the Securities and Exchange Commission,
including, without limitation, information under the captions Risk
Factors and Management's Discussion and Analysis of Financial Condition
and Results of Operations. The Company does not intend to revise or
update the information set forth in this press release, except as
required by law, and may not provide this type of information in the
future.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140811005220/en/
Source: Demand Media, Inc.