|Demand Media Acquires CoveritLive|
SANTA MONICA, Calif., Mar 03, 2011 (BUSINESS WIRE) -- Demand Media, Inc. (NYSE: DMD), a leading content and social media company, today announced the acquisition of CoveritLive. Brands like ESPN, Ford, News Corp and BBC use CoveritLive to engage event audiences with real-time commentary, instant reader polling and question and answer capabilities. Events hosted on CoveritLive attract an audience of over 60 million people every month, 60% of which comes from outside the United States.
"CoveritLive really reflects our mission as a company - publishing what the world wants to know and share. Consumers around the world are tuning in by the millions to participate in live events powered by CoveritLive, collectively spending over a billion minutes on the platform each month" said Richard Rosenblatt, Chairman and CEO of Demand Media. "CoveritLive's live event platform helps us continue to work towards that mission, building on both our social publishing model and our social media product offering with a platform that offers proven value to both brands and consumers."
CoveritLive has grown rapidly as major brands increasingly use its live event platform. For instance, last weekend CoveritLive powered conversations during Sunday's Oscar ceremonies on properties like People, TMZ, Entertainment Weekly, Variety and the Daily Beast. According to Google Analytics, on Oscar Sunday over 2 million people viewed event coverage powered by CoveritLive.
Demand Media and CoveritLive have worked together since 2009, when Demand Media made a strategic investment in CoveritLive. With that investment, Demand Media secured a minority interest in CoveritLive. With today's acquisition, CoveritLive will become part of Demand Media's portfolio of social solutions, along with its integrated community platform Pluck.
"Like Demand Media, we started CoveritLive to help fill the gaps in online content. We saw an opportunity to cover live events in a way that no one had before by combining talented writers, multimedia and two way engagement via comments and polls" said Keith McSpurren, President and Founder of CoveritLive. "As a Demand Media partner, our joint customers have seen the value of combining our service with Pluck's integrated community platform. It's a powerful combination that helps marketers engage consumers before, during and after an event."
For more information, or to try CoveritLive for free, please visit www.coveritlive.com.
About Demand Media
Demand Media, Inc. (NYSE: DMD) is a leading online media company that informs, entertains and connects millions of people every day. Through a portfolio of vertical web properties that reaches more than 100 million monthly visitors, a global network of digital partners, and an innovative content studio, Demand Media publishes what the world wants to know and share. Founded in 2006, Demand Media is headquartered in Santa Monica, CA with offices in Bellevue, WA, Austin, TX, Chicago, IL, New York, NY and London, UK. For more information about Demand Media, visit: www.demandmedia.com.
© 2011 Demand Media, Inc.
Demand Media and CoveritLive are trademarks and/or registered trademarks of Demand Media, Inc. in the United States and/or other countries. All other trademarks may be trademarks of their respective owners.
Cautionary Information Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements involve risks and uncertainties regarding Demand Media's future financial performance, and are based on current expectations, estimates and projections about Demand Media's industry, financial condition, operating performance and results of operations, including certain assumptions related thereto. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "business outlook," and "estimate" or similar expressions constitute forward-looking statements. Actual results may differ materially from the results predicted, and previously reported results should not be considered an indication of future performance. Potential risks and uncertainties include, among others: our ability to compete with new or existing competitors; our ability to maintain or increase our advertising revenue; our ability to continue to drive and grow traffic to our owned and operated websites and the websites of our network customers; our ability to effectively monetize our portfolio of content; our dependence on material agreements with a specific business partner for a significant portion of our revenue; future internal rates of return on content investment and our decision to invest in different types of content in the future; changes in the methodologies of Internet search engines and the impact such changes may have on driving search related traffic to our owned and operated websites and the websites of our network customers; our ability to attract and retain freelance content creators; the effects of changes in marketing expenditures or shifts in marketing expenditures; the effects of seasonality on traffic to our owned and operated websites and the websites of our network customers; changes in stock-based compensation; changes in amortization or depreciation expense due to a variety of factors; potential write downs, reserves against or impairment of assets including receivables, goodwill, intangibles or other assets; changes in tax laws, our business or other factors that would impact anticipated tax benefits or expenses; our ability to successfully identify, consummate and integrate acquisitions; our ability to retain key customers and key personnel; risks associated with litigation; governmental regulation; and the effects of discontinuing or discontinued business operations. From time to time, we may consider acquisitions or divestitures that, if consummated, could be material. Any forward-looking statements regarding such acquisitions or divestitures are based upon the assumption that such acquisition or divestiture is consummated during the relevant period. The actual impact of such acquisition or divestitures on actual results could differ materially from any forward-looking statements.More information about potential risk factors that could affect our operating and financial results will be included in Demand Media's annual and quarterly reports filed with the Securities and Exchange Commission (www.sec.gov), including, without limitation, information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations."
SOURCE: Demand Media, Inc.
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