[ibimage==32797==Medium==none==self==ibimage_align-left]Demand Media just announced its intent to buy Los Angeles-based Saatchi Art for $17 million in cash and stock. As part of the deal, Saatchi Art CEO Sean Moriarty will become Demand Media’s new CEO. Moriarty has deep connections to the tech community, including serving on the boards of Eventbrite, Metacloud, and TuneIn. He has been CEO of Saatchi Art since August 2013 and before that was President and CEO of Ticketmaster.
The deal comes as Demand Media is working to restructure itself away from lower performing business units. Recently Demand Media has sold off Rightside, an Internet domain registration service, CreativeBug, an online video arts and crafts business, and CoveritLive, a live event-publishing platform.
Demand Media has generally made its name as an online content production house with brands such as Livestrong, eHow and Cracked. And though Demand Media owns a consumer art company called Society6, that sells gallery prints on posters, iPhone cases, tote-bags and similar consumer products, the acquisition of Saatchi does not at first seem like an obvious merger. Saatchi Art is more focused on selling mid-market artwork, while Society6 is much more of a consumer-focused company. How Saatchi Art will fit into Demand Media’s existing businesses remains to be seen.
Whatever the collaboration between the two companies is in the future, perhaps the most important part of the deal to Demand Media was hiring Sean Moriarty as CEO.
“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 of Demand Media. “I’m excited to be working closely with him as we enter the next phase of the company’s future.”
“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 CEO Sean Moriarty in a statement. “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.”
Demand Media expects its purchase of Saatchi to contribute revenue of $500,000 to $1 million per quarter. Shawn Colo, Demand Media’s co-founder and former interim CEO was appointed President and will join the board of directors.
