*This story has been updated to include the statement from Demand Media Chief Executive Sean Moriarty.
Santa Monica Web publisher Demand Media said in a Securities and Exchange Commission filing Tuesday that co-founder and President Shawn Colo had resigned.
Colo served in those roles since August, following a stint as interim chief executive after the departure of Richard Rosenblatt in 2013. He was previously executive vice president for corporate development. He made way for Saatchi Art Chief Executive Sean Moriarty, who assumed that role at Demand when it acquired the online art gallery for $17 million in cash and stock.
“I think the board wanted some fresh blood in the company,” Sameet Sinha, an analyst with B. Riley in San Francisco, said of Moriarty’s appointment. He said Colo’s departure was not surprising.
Colo will leave the company on Feb. 20, as will board member Gaurav Bhandari. With the departures, the Demand board will shrink to seven from nine.
“For eight years Shawn has put his heart into Demand Media and he leaves a legacy of lasting contributions to the business and our culture," said Moriarty in an emailed statement to the Business Journal. "His leadership and friendship will be missed and we wish him the very best as he pursues his next opportunity."
Demand’s stock price closed flat in Tuesday trading at $5.16.
Revenue has been slumping at the online content maker since 2011 when Google Inc. adjusted its search algorithm to skip low-quality content.
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