Demand Media has named a former Ticketmaster chief Sean Moriarty as its new CEO. The move follows a rough second quarter, when it revealed last Thursday that its revenue excluding traffic acquisition costs (ex-TAC) declined 10% year-over-year to $87.1 million.
The company on Monday also acquired online art community Saatchi Online in a $17 million cash-and-stock deal. Moriarty served most recently as CEO of Saatchi Art. Demand Media Cofounder Shawn Colo took the reigns as interim CEO in October, when then chairman and CEO Richard Rosenblatt announced his departure. Colo is to serve as Demand's president upon the latest transition.
Demand Media, the owner of myriad media properties ranging from eHow to humor site Cracked.com, has experienced some pain points, as have other publishers, in their shift to programmatic pricing models. Ad revenue in the second quarter was $31 million, a 33% YoY drop, which Colo credited to "lower desktop traffic to our owned-and-operated properties and our strategic shift to programmatic ad solutions, which currently have a lower CPM than higher-touch direct ad sales."