Demand Media dives after naming new CEO, buying his company

|By:, SA News Editor

Sean Moriarty, the CEO of online art marketplace Saatchi Art and once the CEO of Ticketmaster, has been named Demand Media's (DMD -7.1%) new CEO. Moriarty replaces co-founder Shawn Colo, who has been serving as interim CEO since last October, following Richard Rosenblatt's resignation.

Along with the appointment, Demand announces it has acquired Saatchi Art parent Saatchi Online for $17M in cash and stock. In the near-term, Saatchi is expected to produce $500K-$1M/quarter in revenue, and lower adjusted EBITDA by $1M-$1.5M/quarter.

Shares have fallen to their lowest levels since Demand finished its Rightside spinoff at the beginning of the month.