Demand Media’s RSS Graffiti Buy Is Good News for a Demand Media Executive
Demand Media’s recent purchase of technology company RSS Graffiti is good news for Michael Blend, who owned 40 percent of the start-up. But the deal doesn’t mean Blend will quit his day job — working as a Demand Media executive.
Demand explained the relationship between Blend, its executive vice president for special projects, and its recent acquisition, in an SEC filing today. It also disclosed the sales price: $16.4 million, primarily in cash. The company announced earlier this week that it had also paid $14 million for ad-rep firm IndieClick.
Demand says it bought RSS Graffiti because of a content sharing application it had built for Facebook, and said the deal would “enhance the Company’s social media service offering.” Earlier this year, Demand had struck a deal with RSS Graffiti to “develop a data warehouse and analytics platform.”
This isn’t the first time Demand has purchased one of Blend’s companies. His corporate bio notes that he ended up at Demand in 2006, after the company bought Hotkeys, a start-up he founded and ran. That deal earned Blend two million shares of restricted stock, among other benefits.