In two announcements today Demand Media (DMD) acquired Society6, an e-commerce marketplace for artwork and related merchandise for $94 Million dollars.
Society6, had 2012 revenue of $15M.
The purchase price will be paid $75M in cash and $19M in stock.
As of March 30, the company only had $109.4M in cash.
Also Demand today lowered its revenue guidance for the second quarter citing “a reduction in search engine referral traffic to its owned and operated sites in May and June.”
The company said it now expects revenue excluding traffic acquisition costs to come in the range of $95.5 million and $96.5 million, compared to its previous forecast for a range of $100.5 million and $107 million.
love to see these companies spend all their money before the coming economic crisis.
I’d like to know what Demand Media is doing to shore up its return and referral traffic. If their content focus had been real, substantive media material, they wouldn’t be so dependent upon search engines. They have to think of themselves as resource curators, not just micro-crap “e-leaflet” providers who pay starving writers a pauper’s wage.
Anyway, I’m sure they have a plan, whatever that may be.
Danny –
Paul Stahura may be the only one of that bunch that has a “plan” and he sold out.
But I still keep 99% of my dirt at eNom – because I like Bari and others under the Demand umbrella 🙂