Demand Media divestments: sells off Creativebug to Otter Media, completes sale of CoveritLive
The content and social media company Demand Media today announced that it would selling s online video arts and crafts property Creativebug to Otter Media, a new joint venture of AT&T and Chernin Group. The joint venture with the telecommunications company and the media investment firm was announced in April and has committed $500 million to making acquisitions and other investments.
Demand Media, it is reported, sold the property for $10 million.
“These divestitures allow Demand Media to refocus attention from nascent businesses in emerging markets to opportunities that are more in line with our overall growth strategy,” said Shawn Colo, interim CEO of Demand Media in the company’s announcement of the sale. “By streamlining our approach to the business, we can more effectively connect passionate audiences with engaged experts, artists and opinion makers across our consumer lifestyle brands and our Content Solutions partners.”
Demand Media also said it had completed the sale of, CoveritLive, to Toronto-based ScribbleLive.
Creativebug was founded by Jeanne Lewis and Julie Roehm in 2012, and features do-it-yourself video workshops that are priced at $9.99 per month. That the property would be worth $10 million is probably a stretch. But then again, there is a lot of money out there right now (some call it a bubble, though with deals like this it might well be a zeppelin).