Demand Media Sells Creativebug, CoveritLive
Demand Media announced the sale of a couple of its properties on Monday: Creativebug and CoveritLive.
The company acquired Creativebug just last year. The service provides online video workshops for arts and crafts. Think of it like a Google Helpouts for stuff you’d see on Etsy.
At the time of the acquisition, a Demand Media spokesperson told us, “They are on the leading edge of two big growth opportunities: e-learning and crafts. The overall market opportunity is huge – the crafts industry has grown into a $30 billion dollar industry and the worldwide e-learning market is around $90+ billion. The Creativebug acquisition accelerates our expansion into e-learing, one of the paid content models that we plan to aggressively invest in during 2013.”
Apparently that plan doesn’t extend any further into 2014. Demand Media has sold Creativebug to Otter Media, the newly named venture between AT&T and The Chernin Group.
Demand Media acquired CoveritLive back in 2011. It’s a real-time event coverage provider, which at the time was being used by brand like Yahoo, ESPN, Ford, Time, News Corp., FOX News, and the BBC. Demand positioned the acquisition as a way to expand its social reach. It’s now been sold to ScribbleLive.
Demand Media’s interim CEO Shawn Colo said, “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. 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.”
The company did not disclose terms of either sale.
Image via Creativebug