Demand Media, Inc, named one-time Ticketmaster Chief Executive Sean Moriarty as its new CEO and the market didn’t like the news sending shares down over 8% to close at $8.97 a share.
You may recall it was just a week ago when Demand split off its Rightside division it traded as high as $11.10.
Demand also said today it acquired Saatchi Online, which runs online art gallery Saatchi Art, for $17 million.
Moriarty had been CEO of Saatchi Art since August 2013, and was CEO of Ticketmaster from 2007 to 2009.
As Demand Media is no longer in the domain name business we at TheDomains.com are going to suspend coverage of the company.
(Disclaimer the publisher of the blog owned shares of Demand before the spin off and sold the shares last week the day of the spin off, to buy shares of Rightside, so we are now shareholders of Rightside but own no shares of Demand)
Well if I’m not mistaken – the company is unprofitable and their financials don’t look that great. I don’t think that’s a stock I would personally want in my portfolio… There had to be some kind of “expectation” built into that share price and apparently this guy becoming the CEO was not the expectation…
Any time there is an acquisition of another company, the company performing the acquisition witnesses a drop in stock value, usually temporarily. The Saatchi Online buy is phenomenal, in my opinion.