First Posted: 10/14/2013
(AP) Demand Media said Monday that its CEO and chairman, Richard Rosenblatt, will resign from the company he helped found by the end of the month.
The Internet publisher said that co-founder Shawn Colo is the interim president, effective immediately, and will become the temporary CEO when Rosenblatt resigns on Oct. 31. Demand Media will start a search for a permanent CEO soon. James Quandt, a member of Demand Media's board since 2008, will take over as chairman, effective immediately.
The Santa Monica, Calif.-based company did not explain why Rosenblatt was resigning. He has been CEO since the company was founded in 2006.
"I realize that all journeys must ultimately come to an end and want to wish Shawn and the entire team success as they continue to grow the business," Rosenblatt said in a statement.
Demand Media's shares have lost 66 percent of their value since the company went public in January 2011 with an initial public offering price of $17. Analysts expect the company to report a loss this year, after posting a profit last year, according to FactSet.
Demand Media assigns freelancers to produce stories about frequently searched topics online and then sells advertisements alongside the content at its own websites, which include eHow. That business has suffered from changes in Google's search formula that cut the amount of traffic to its websites.
Earlier this year, Demand Media announced it plans to split itself into two publicly traded companies. The company said Monday that it is still committed to that plan. One of the companies will handle the company's how-to articles and the other will offer domain registry services.
Demand Media shares closed unchanged Monday at $5.85.Associated Press