Amod Saul

Demand Media: Down But Not Out

Demand Media (NYSE:DMD), a leading digital media and domain services company, is going ahead with its plan to split itself into two separate companies: "Demand Media" for ecommerce and digital content and "Rightside" for domain services.

Demand Media's content and media business has been under pressure lately due to changes in Google (NASDAQ:GOOG) search algorithms which caused a reduction in advertising revenue and a decline in the company's share price, which is currently down 44% from its peak for the year.

I believe the eminent business split, combined with the recent acquisition of Society6 artists-powered ecommerce platform are two positive events that could reverse the recent decline in share price and possibly offer a...

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