Santa Monica digital media company Demand Media announced Monday that it bought online art gallery Saatchi Art for $17 million in cash and stock. Demand also hired Saatchi Chief Executive Sean Moriarty for the same position at Demand.
Saatchi Art is home to a global community of more than 45,000 artists who sell their work on the site. In the short term, Demand expects the acquisition to add revenue of $500,000 to $1 million each quarter and reduce adjusted Ebitda by $1 million to $1.5 million each quarter for the near term.
Moriarty, who was the chief executive of West Hollywood ticketing giant Ticketmaster Entertainment Inc. before joining Saatchi, received $13 million in Demand stock options as part of the deal. Demand’s current chief executive, Shawn Colo, will become president of the company and join the board.
Shares of Demand Media on Monday fell 80 cents, or 8 percent, to $8.97 on the NYSE.
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