NAME to Commence “Regular-Way” Trading Today
SANTA MONICA, Calif.--(BUSINESS WIRE)--
Demand
Media, Inc.® (NYSE: DMD) announced the successful completion of the
separation of Rightside
Group, Ltd. (“Rightside”) from Demand Media in the form of a
tax-free dividend involving the distribution of all outstanding shares
of Rightside common stock to holders of Demand Media common stock. Under
the terms of the distribution, on August 1, 2014, Demand Media
stockholders as of the close of business, New York City time on July 25,
2014, the record date for the distribution, received one share of
Rightside common stock for every five shares of Demand Media common
stock held on the record date. Immediately following the distribution,
Demand Media enacted a 1-for-5 reverse stock split of its outstanding
and treasury shares of common stock.
Beginning today, Demand Media will trade “regular-way” on a post reverse
stock split basis on the New York Stock Exchange under the symbol “DMD”
and Rightside will trade “regular-way” as a separate publicly traded
company on the Nasdaq Global Select Market under the symbol “NAME.”
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.
About Rightside
Rightside™ inspires and delivers new possibilities for consumers and
businesses to define and present themselves online. The company, with
its affiliates, is a leading provider of domain name services, offering
one of the industry’s most comprehensive platforms for the discovery,
registration, development, and monetization of domain names. This
includes more than 16 million names under management, the most widely
used domain name reseller platform, more than 20,000 distribution
partners, an award-winning retail registrar, the leading domain name
auction service through its NameJet joint venture and an interest in
approximately 100 new Top Level Domain registry operator agreements or
applications through Rightside affiliate, United TLD Holdco Limited,
trading as Rightside Registry. Rightside is home to some of the most
admired brands in the industry, including eNom,
Name.com,
and NameJet
(in partnership with Web.com). Headquartered in Kirkland, WA, Rightside
has offices in North America, Europe and Australia. For more information
please visit www.rightside.co.
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.
Statements regarding Demand Media’s and Rightside’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. Forward-looking statements involve risks and uncertainties
including, among others: the expectation that the separation transaction
will be tax-free; revenue and growth expectations for the two
independent companies following the separation; the ability of each
business to operate as an independent entity upon completion of the
separation; the impact of the reverse stock split on the trading price
of Demand Media’s common stock; and market conditions in general and
those applicable to the distribution and reverse stock split. More
information about potential risk factors that could affect Demand
Media’s and Rightside’s operating and financial results are contained in
(i) Demand Media’s 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 Demand Media’s
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 and (ii) Rightside’s
Registration Statement on Form 10, as amended, initially filed with the
Securities and Exchange Commission on January 13, 2014. Demand Media and
Rightside do 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.
Source: Demand Media, Inc.