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F-8
Demand Media, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
1. Company Background and Overview
Demand Media, Inc. (“Demand Media” and, together with its consolidated subsidiaries, the “Company,” “our,”
“we,” or “us”) is a Delaware corporation headquartered in Santa Monica, California. We are a diversified Internet
company that builds platforms across its media and marketplaces properties to enable communities of creators to reach
passionate audiences in large and growing lifestyle categories. Our business is comprised of two service offerings:
Content & Media and Marketplaces.
On August 1, 2014, we completed the separation of Rightside Group, Ltd. (“Rightside”) from Demand Media,
Inc., resulting in two independent, publicly traded companies (hereinafter referred to as the “Separation”). Following the
Separation, Rightside operates the domain name services business, while we continue to own and operate our Content &
Media and Marketplaces businesses. The Separation was structured as a pro rata tax-free dividend involving the
distribution of all outstanding shares of Rightside common stock to holders of Demand Media common stock as of the
August 1, 2014 record date (the “Distribution”). Immediately following the Distribution, we completed a 1-for-5, reverse
stock split with respect to all of our outstanding and treasury shares of common stock, which is reflected retrospectively
throughout the consolidated financial statements.
Content & Media
Our Content & Media service offering includes our leading owned and operated online properties that publish
media content, including text articles, videos, photographs and designed visual formats. This content is published across
several key categories on eHow.com (“eHow”), a do-it-yourself and how-to reference destination; Livestrong.com, a
health and healthy living destination; Cracked.com (“Cracked”), a humor site offering original and engaging comedy-
driven video series, text articles and blogs; and certain niche properties focused on specific interests. Additionally, our
studioD business develops and executes content marketing strategies and creates custom content for third-party brands,
advertisers and publishers.
Marketplaces
Through our Marketplaces service offering, we operate two leading art and design marketplaces where large
communities of artists can market and sell their original artwork or original designs printed on a wide variety of
products. Society6.com (“Society6”) provides artists with an online commerce platform to feature and sell their original
designs on art prints, phone and tablet cases, t-shirts, throw pillows and other consumer and home décor products.
SaatchiArt.com (“Saatchi Art”) is an online art gallery featuring a wide selection of original paintings, drawings,
sculptures and photography that provides a global community of artists a curated environment in which to exhibit and
sell their work directly to consumers around the world.
2. Basis of Presentations and Summary of Significant Accounting Policies
A summary of the significant accounting policies consistently applied in the preparation of the accompanying
consolidated financial statements follows.
Basis of Presentation
Our common stock share information and related per share amounts included in the consolidated financial
statements have been adjusted retroactively for all periods presented to reflect the 1-for-5 reverse stock split of our
common stock that was effected on August 1, 2014.