Juno 2013 Annual Report Download - page 5

Table of Contents
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United Online, through its operating subsidiaries, provides consumer services and products over the Internet under a number of brands, including
Classmates, StayFriends, Trombi, MyPoints, NetZero, and Juno.
United Online, Inc. is a Delaware corporation, headquartered in Woodland Hills, California, that commenced operations in 2001 following the
merger of dial-up Internet access providers NetZero, Inc. ("NetZero") and Juno Online Services, Inc. ("Juno"). In 2004, we acquired Classmates
Online, Inc. (whose name was changed to Classmates, Inc. in December 2013, "Classmates"), a provider of social networking services, and in 2006,
we acquired MyPoints.com, Inc. ("MyPoints"), a provider of a loyalty marketing service. In 2008, we acquired FTD Group, Inc. (together with its
subsidiaries and its parent, FTD Companies, Inc., "FTD"), a provider of floral, gift and related products and services to consumers and retail florists, as
well as to other retail locations offering floral, gift and related products and services under the FTD and Interflora brands. In June 2012, we acquired
schoolFeed, Inc. ("schoolFeed"), an online high school social network that enables members to reconnect and interact with their former classmates.
On November 1, 2013, United Online, Inc. consummated the separation of FTD Companies, Inc. (together with its subsidiaries, "FTD") from
United Online, Inc. through a tax-free distribution of all FTD Companies, Inc. common stock held by United Online, Inc. to United Online, Inc.'s
stockholders (the "FTD Spin-Off Transaction"). On October 31, 2013, immediately prior to the completion of the FTD Spin-Off Transaction, United
Online, Inc. implemented a one-for-seven reverse stock split of shares of United Online, Inc. common stock. Accordingly, the results of operations,
financial condition and cash flows of FTD have been presented as discontinued operations for all periods presented. Further, except as noted, all United
Online, Inc. common stock share information and related per share amounts have been adjusted to reflect the one-for-seven reverse stock split of shares
of United Online, Inc. common stock.
Prior to the completion of the FTD Spin-Off Transaction, United Online, Inc. and FTD Companies, Inc. entered into a Separation and Distribution
Agreement, a Tax Sharing Agreement and an Employee Matters Agreement, each dated October 31, 2013, that govern the post-separation relationship.
In addition, United Online, Inc. and FTD Companies, Inc. entered into a Transition Services Agreement, dated October 31, 2013, as amended
January 2, 2014, under which United Online, Inc. agreed to provide FTD with various services on an interim, transitional basis, generally for a period
of up to 12 months.
We report our businesses in two reportable segments:
In 2013, the Content & Media segment and the Communications segment accounted for 57% and 43% of consolidated revenues, respectively. In
both 2012 and 2011, the Content & Media segment and the Communications segment accounted for 59% and 41% of consolidated revenues,
respectively.
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Content & Media Social networking services and products and a loyalty marketing service
Communications Internet access services and devices, including dial-up, mobile broadband, DSL, email, Internet security and web hosting
services