Jan 13 Demand Media moved on Monday to
spin off its Rightside Group domain business as a separately
traded company, according to filing with the U.S. Securities and
Demand Media, which owns websites eHow, LiveStrong and
Cracked and mainly makes money from articles and videos that
surface high in search results, previously said it planned to
spin out its domain unit in February 2013.
Demand Media shareholders will receive shares of Rightside
Group, although the filing did not offer specifics of the
In addition, Demand Media plans to ask its stakeholders to
approve a reverse stock split during a special meeting, the
The Rightside Group filing puts to an end questions about
the timing of the separation, which had been in flux after the
abrupt exit of co-founder, Chairman and Chief Executive Officer
Richard Rosenblatt in October. The company said a search for a
CEO was its top priority.
Another Demand co-founder, Shawn Colo, has become interim
Colo said in a statement that the filing marked "another key
milestone for the planned separation and spinoff in 2014."
The registrar business, which maintains top-level generic
Web domain names like ".actor" and ".social," reported an 11
percent rise in third-quarter revenue to $37.7 million.