Demand Media Makes Acquisition, Cuts Revenue ForecastMonday, June 24, 2013
Demand Media Inc. on Monday said it acquired Society6, an e-commerce marketplace for artists, in a cash-and-stock deal valued at about $94 million.
The company also cut is second-quarter revenue outlook.
After the markets closed, Santa Monica Internet media and domain services provider said that it will pay $75 million in cash and about $19 million in stock for Society6, a platform that enables artists to upload and market their work and have it applied to products such as T-shirts and phone cases, as well as art prints.
“This acquisition will significantly accelerate the scale of our e-commerce business as we continue to expand into new revenue models,” Demand Chief Executive Richard Rosenblatt said in a sentence.
The company cut its second-quarter revenue forecast to $100 million to $101 million, down from the prior estimate of $105 million to $107 million. Analysts surveyed by Thomson Reuters are expecting revenue of less than $102 million.
Shares earlier closed down 14 cents, or 2 percent, to $8.17 on the New York Stock Exchange.