Demand Media Acquires Society6 for U$94 million
Content website owner Demand Media acquired e-commerce marketplace Society6. The acquisition deal was priced at US$94 million in cash and stock. This was the company's move to diversify its business model. Demand Media owns content sites such as eHow, Livestrong and Cracked.
Society6 marks Demand's first journey into e-commerce. Society6 has around 300,000 members that sell their goods directly to clients.
Demand stated on Monday, that a revision was made on its second quarter forecast due to a reduction in search engine referral traffic. Revenue of between US$100 million and US$101 million is expected to be acquired compared with previous range of US$105 million to US$107 million.
Demand Media has been a closely watched experiment by businesses online. it showed how content can be inexpensively created and distributed. Freelancers are paid by Demand Media to write articles and produce videos. The output appear at the top of search engine results that in turn create advertising.