Leaf 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	DEMAND MEDIA INC.
Entity Central Index Key	1,365,038
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,388,414
Entity Current Reporting Status	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 60,927	$ 38,570
Accounts receivable, net	7,201	10,469
Prepaid expenses and other current assets	3,470	4,989
Total current assets	71,598	54,028
Property and equipment, net	11,980	14,568
Intangible assets, net	15,194	21,332
Goodwill	10,358	10,358
Other assets	4,950	1,173
Total assets	114,080	101,459
Current liabilities
Accounts payable	1,838	1,973
Accrued expenses and other current liabilities	12,651	15,169
Deferred revenue	2,456	2,933
Total current liabilities	16,945	20,075
Deferred tax liability		551
Other liabilities	1,683	1,713
Stockholders’ equity
Common stock, $0.0001 par value. Authorized 100,000 shares; 21,240 issued and 20,438 shares outstanding at June 30, 2016 and 20,956 issued and 20,154 shares outstanding at December 31, 2015	2	2
Additional paid-in capital	509,379	505,603
Accumulated other comprehensive loss	(93)	(91)
Treasury stock at cost, 802 at June 30, 2016 and December 31, 2015	(30,767)	(30,767)
Accumulated deficit	(383,069)	(395,627)
Total stockholders’ equity	95,452	79,120
Total liabilities and stockholders’ equity	$ 114,080	$ 101,459

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value (USD per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000	100,000
Common Stock, Shares, Issued	21,240	20,956
Common Stock, Shares, Outstanding	20,438	20,154
Treasury Stock, Shares	802	802

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Service revenue	$ 12,430	$ 20,067	$ 26,935	$ 43,292
Product revenue	12,005	9,701	24,469	19,686
Total revenue	24,435	29,768	51,404	62,978
Operating expenses:
Service costs (exclusive of amortization of intangible assets shown separately below)	6,676	9,550	14,847	19,699
Product costs	8,290	6,768	16,797	13,602
Sales and marketing	7,254	4,947	13,249	9,741
Product development	5,348	6,571	10,962	13,607
General and administrative	7,422	9,234	15,952	18,583
Amortization of intangible assets	3,114	7,225	6,146	11,936
Total operating expenses	38,104	44,295	77,953	87,168
Loss from operations	(13,669)	(14,527)	(26,549)	(24,190)
Interest income	23	181	25	361
Interest expense		(71)		(142)
Other income, net	38,182	19	39,162	2,846
Income (loss) before income taxes	24,536	(14,398)	12,638	(21,125)
Income tax expense	(69)	(10)	(80)	(32)
Net income (loss)	$ 24,467	$ (14,408)	$ 12,558	$ (21,157)
Net income (loss) per share
Basic	$ 1.20	$ (0.73)	$ 0.62	$ (1.07)
Diluted	$ 1.18	$ (0.73)	$ 0.61	$ (1.07)
Weighted average number of shares
Basic	20,389	19,841	20,301	19,807
Diluted	20,679	19,841	20,518	19,807

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 24,467	$ (14,408)	$ 12,558	$ (21,157)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(3)	(15)	(2)	(9)
Comprehensive income (loss)	$ 24,464	$ (14,423)	$ 12,556	$ (21,166)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional paid-in capital	Treasury Stock	Accumulated other comprehensive income (loss)	Accumulated deficit	Total
Stockholders' equity, beginning balance at Dec. 31, 2015	$ 2	$ 505,603	$ (30,767)	$ (91)	$ (395,627)	$ 79,120
Common stock shares outstanding, beginning balance at Dec. 31, 2015	20,154					20,154
Issuance of stock under employee stock awards and other		91				$ 91
Issuance of stock under employee stock awards and other, shares	284
Tax withholdings related to vesting of share-based payments		(994)				(994)
Stock-based compensation		4,679				4,679
Foreign currency translation adjustment				(2)		(2)
Net income					12,558	12,558
Stockholders' equity ending balance at Jun. 30, 2016	$ 2	$ 509,379	$ (30,767)	$ (93)	$ (383,069)	$ 95,452
Common stock shares outstanding, ending balance at Jun. 30, 2016	20,438					20,438

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net income (loss)	$ 12,558	$ (21,157)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	10,588	17,209
Stock-based compensation	4,438	4,124
Gain on disposal of business and online properties	(39,149)	(2,908)
Other	102	199
Change in operating assets and liabilities, net of effect of disposals
Accounts receivable, net	3,118	4,360
Prepaid expenses and other current assets	629	(394)
Other long-term assets	(17)	(132)
Accounts payable	(20)	(3,858)
Accrued expenses and other liabilities	(2,379)	(3,903)
Deferred revenue	(153)	(149)
Net cash used in operating activities	(10,285)	(6,609)
Cash flows from investing activities
Purchases of property and equipment	(2,539)	(2,586)
Purchases of intangible assets	(4)	(56)
Cash received from disposal of businesses and online properties, net of cash disposed	35,906	3,831
Other	184	205
Net cash provided by investing activities	33,547	1,394
Cash flows from financing activities
Proceeds from exercises of stock options and purchases under ESPP	91	248
Net taxes paid on restricted stock units and options exercised	(994)	(440)
Other		(112)
Net cash used in financing activities	(903)	(304)
Effect of foreign currency on cash and cash equivalents	(2)	(9)
Change in cash and cash equivalents	22,357	(5,528)
Cash and cash equivalents, beginning of period	38,570	47,820
Cash and cash equivalents, end of period	$ 60,927	$ 42,292

Company Background and Overview

Company Background and Overview	6 Months Ended
	Jun. 30, 2016
Other Balance Sheet Items
Company Background and Overview	1. Company Background and Overview Demand Media, Inc. (“Demand Media” and, together with its consolidated subsidiaries, the “Company,” “our,” “we,” or “us”) is a Delaware corporation headquartered in Santa Monica, California. We are a diversified Internet company that builds platforms across our marketplaces and media properties to enable communities of creators to reach passionate audiences in large and growing lifestyle categories. Our business is comprised of two service offerings: Marketplaces and Content & Media. Marketplaces Through our Marketplaces service offering, we operate two leading art and design marketplaces where large communities of artists can market and sell their original artwork or their original designs printed on a wide variety of products. Society6.com (“Society6”) provides artists with an online commerce platform to feature and sell their original designs on an array of consumer and home décor products such as art prints, phone and tablet cases, t-shirts, and throw pillows. SaatchiArt.com (“Saatchi Art”) is an online art gallery featuring a wide selection of original paintings, drawings, sculptures and photography that provides a global community of artists with a curated environment in which to exhibit and sell their work directly to consumers around the world . Content & Media Our Content & Media service offering includes our leading owned and operated online properties that publish media content, including text articles, videos, photographs and designed visual formats. This content is published across several key categories on eHow, a do-it-yourself and how-to reference destination; Livestrong.com, a health and healthy living destination; and certain other online properties focused on specific interests. Our Content & Media service offering also includes our studioD business, which is comprised of our content channels and custom content businesses. Our content channels business creates content for third-party publishers that is primarily posted on sub-domains of those publishers’ websites that are hosted by us, while our custom content business develops content for brands. In June 2016, we took certain actions to streamline our studioD business and better integrate the business into our broader Content & Media service offering. Following this realignment, the custom content business will focus on creating sponsored content and native advertising campaigns for brands using a more integrated approach that includes distribution of the custom content on our owned and operated online properties .

Basis of Presentation -10K

Basis of Presentation -10K	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying interim condensed consolidated balance sheet as of June 30, 2016, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss) for the three and six month periods ended June 30, 2016 and 2015, the condensed consolidated statements of cash flows for the six month periods ended June 30, 2016 and 2015 and the condensed consolidated statement of stockholders’ equity for the six month period ended June 30, 2016 are unaudited. In the opinion of management, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair statement of our statement of financial position as of June 30, 2016, our results of operations for the three and six month periods ended June 30, 2016 and 2015, and our cash flows for the six month periods ended June 30, 2016 and 2015. The results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results expected for the full year. The consolidated balance sheet as of December 31, 2015 has been derived from our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States, for interim financial information and with the instructions from the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. During the first quarter of 2016, we reclassified certain personnel costs, including stock-based compensation, primarily relating to individuals serving in management roles for specific businesses, from general and administrative expense to either service costs, sales and marketing or product development, to better reflect the respective functions of these individuals. Certain prior period amounts have been reclassified to conform to the current period presentation, resulting in the following changes in our condensed consolidated statement of operations for the three and six month periods ended June 30, 2015, respectively: (i) decreases of $0.7 million and $1.7 million in general and administrative expense; (ii) increases of $0.5 million and $1.2 million in product development expense; (iii) increases of $0.2 million and $0.4 million in sales and marketing expense; and (iv) increases of less than $0.1 million and $0.2 million in service costs. Principles of Consolidation The consolidated financial statements include the accounts of Demand Media and its wholly owned subsidiaries. Acquisitions are included in our consolidated financial statements from the date of the acquisition. Our purchase accounting resulted in all assets and liabilities of acquired businesses being recorded at their estimated fair values on the acquisition dates. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue; allowance for doubtful accounts; the assigned value of acquired assets and assumed liabilities in business combinations; useful lives and impairment of property and equipment, intangible assets, goodwill and other assets; the fair value of equity-based compensation awards; and deferred income tax assets and liabilities. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of our assets and liabilities. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The original effective date for ASU 2014-09 would have required the Company to adopt this standard beginning in the first quarter of fiscal 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company has the option to not adopt the standard until the first quarter of fiscal 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on the consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting Measurement-Period Adjustments . This update simplifies the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. Under this update, the adjustments are recognized in the reporting period in which the adjustment amounts are determined. This update is effective for the Company commencing in the first quarter of fiscal 2016 and should be applied prospectively. The Company adopted the standard effective January 1, 2016, and there has been no impact to the consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . This amended guidance requires an entity to present deferred tax assets and liabilities as noncurrent in the statement of financial position. The amended guidance is effective for the Company commencing in the first quarter of fiscal 2018. Early adoption is permitted and the guidance may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company elected to prospectively adopt the standard effective January 1, 2016 and believes the application of the guidance simplifies and improves the usefulness of deferred tax information for users of the Company’s financial statements. No prior periods were retrospectively adjusted. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This update will require lease assets and lease liabilities to be recognized on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for the Company commencing in the first quarter of fiscal 2019 and must be adopted using a modified retrospective transition, and provides for certain practical expedients. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . This standard makes several modifications to Topic 718 related to the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for the Company commencing in the first quarter of fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property Plant And Equipment [Abstract]
Property and Equipment	3. Property and Equipment Property and equipment consisted of the following (in thousands): June 30, December 31, 2016 2015 Computers and other related equipment $ $ Purchased and internally developed software Furniture and fixtures Leasehold improvements Less accumulated depreciation Property and equipment, net $ $ Depreciation and software amortization expense, which includes losses on disposal of property and equipment of approximately $0.3 million for each of the three month periods ended June 30, 2016 and 2015, and $1.2 million and $0.6 million for the six month periods ended June 30, 2016 and 2015, respectively, is shown by classification below (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service costs $ $ $ $ Sales and marketing Product development General and administrative Total depreciation $ $ $ $

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	4. Intangible Assets Intangible assets consisted of the following (in thousands): June 30, 2016 Gross carrying Accumulated Net carrying amount amortization amount Customer relationships $ $ $ Artist relationships Media content Technology Non-compete agreements Trade names $ $ $ December 31, 2015 Gross carrying Accumulated Net carrying amount amortization amount Customer relationships $ $ $ Artist relationships Media content Technology Non-compete agreements Trade names $ $ $ Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives commencing on the date that the asset is available for its intended use. Total amortization expense for the periods shown below includes (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service costs $ $ $ $ Sales and marketing Product development General and administrative Total amortization $ $ $ $ Service costs include accelerated amortization charges of $ 0.4 million and $3.3 million for the three months ended June 30, 2016 and 2015, respectively, and $0.5 million and $3.3 million for the six months ended June 30, 2016 and 2015, respectively, as a result of removing certain assets from service.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2016
Other Balance Sheet Items
Other Assets	5. Other Assets As of June 30, 2016, we had $5.0 million of long-term assets, comprised primarily of $3.9 million in cash from the sale of our Cracked business that was placed into escrow to secure certain of our post-closing indemnification obligations. Any remaining portion of the escrow amount that is not subject to then-pending claims will be paid to us in July 2017, on the 15 -month anniversary of the closing date of the sale. Our long-term assets also include $1.0 m illion of cash that collateralizes a standby letter of credit associated with the lease of our headquarters office.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2016 2015 Accrued payroll and related items $ $ Artist payables Other Accrued expenses and other current liabilities $ $ During the six months ended June 30, 2016, we recognized severance costs of $1.7 million in connection with targeted headcount reductions, primarily as a result of actions taken in June 2016 to streamline our studioD business and better integrate this business into our broader Content & Media service offering. These severance costs were reco gnized in the condensed consolidated statements of operations as follows: $0.7 million in sales and marketing costs, $0.6 million in product development costs, $0.3 million in service costs, and $0.1 million in general and administrative costs. As of June 30, 2016, there was $1.0 million of accrued severance costs included in accrued expenses and other current liabilities in the conde nsed consolidated balance sheet. We expect the remaining severance accrual to be paid during the third quarter of 2016. Changes to the severance accrual during the six months ended June 30, 2016 are as follows (in thousands): Balance at December 31, 2015 $ New charges Cash payments Balance at June 30, 2016 $

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Leases We conduct our operations utilizing leased office facilities in various locations under operating leases, and as of June 30, 2016, these leases have non-cancelable periods ending between February 2018 and February 2020 . Litigation From time to time , we are a party to various legal matters incidental to the conduct of our business. Certain of our outstanding legal matters include speculative claims for indeterminate amounts of damages. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. Based on our current knowledge, we do not believe that there is a reasonable possibility that the final outcome of the pending or threatened legal proceedings to which we are a party, either individually or in the aggregate, will have a material adverse effect on our future financial results. However, the outcome of such legal matters is subject to significant uncertainties. Taxes From time to time, various federal, state and other jurisdictional tax authorities undertake a review of us or our filings. In evaluating the exposure associated with various tax filing positions, we accr ue charges for possible exposures. Indemnification In the normal course of business, we have provided certain indemnities, commitments and guarantees under which we may be required to make payments in relation to certain transactions or contractual commitments. These indemnities include intellectual property indemnities to our customers, indemnities to our directors and officers to the maximum extent permitted under the laws of Delaware, indemnifications related to our lease agreements and indemnifications to sellers or buyers in connection with acquisitions and dispositions, respectively. In addition, our advertiser, content creation and distribution partner agreements contain certain indemnification provisions, which are generally consistent with those prevalent in our industry. We have not incurred significant obligations under indemnification provisions historically, and do not expect to incur significant obligations in the future. Accordingly, we have not recorded any liability for these indemnities .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes Income tax expense for each of the six month periods ended June 30, 2016 and 2015 was less than $0.1 million. Our effective tax rate differs from the statutory rate primarily as a result of state taxes, foreign taxes, nondeductible stock option expenses and changes in our valuation allowance . As a result of the sale of the Cracked business, we recognized a book income of $38.1 million, recorded in other income, net. We expect to utilize our existing federal and state net operating losses, as well as alternative minimum tax losses carryforwards, to offset any taxable income associated with the gain resulting from the sale of the Cracked business. If all or a portion of our net operating loss carryforwards are subject to limitation because it is determined that we had previously experienced an “ownership change” as defined in section 382 of the Internal Revenue Code of 1986, as amended, our future cash flows could be adversely impacted due to increased tax liability. We reduce our deferred tax assets resulting from future tax benefits by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that some portion or all of these deferred taxes will not be realized. The timing of the reversal of deferred tax liabilities associated with tax deductible goodwill is not certain and thus not available to assure the realization of deferred tax assets. Due to the limitation associated with deferred tax liabilities from tax deductible goodwill, we have deferred tax assets in excess of deferred tax liabilities before application of a valuation allowance for the periods presented. As we have insufficient history of generating income, the ultimate future realization of these excess deferred tax assets is not more likely than not and is thus subject to a valuation allowance. Accordingly, we have established a full valuation allowance against our deferred tax assets. We are subject to the accounting guidance for uncertain income tax positions. We believe it is more likely than not that our income tax positions and deductions will be sustained on audit and do not anticipate any adjustments which could result in a material adverse effect on our financial condition, results of operations, or cash flow. Our policy for recording interest and penalties associated with audits and uncertain tax positions is to record such items as a component of income tax expense, and amounts recognized to date are not material. There are no material uncertain tax positions and no uncertain income tax positions were recorded during the six months ended June 30, 2016 or 2015 , and we do not expect our uncertain tax position to change materially during the next twelve months. We file tax returns in the United States, at both the federal and state level, and in several foreign jurisdictions. The tax years 2008 to 2015 remain subject to examination by the Internal Revenue Service and most tax years since our incorporation are subject to examination by various state authorities.

Stock-based Compensation Plans

Stock-based Compensation Plans and Awards	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Plans and Awards	9. Stock-based Compensation Plans and Awards Stock-based Compensation Expense Stock-based compensation expense related to all employee and non-employee stock-based awards recognized in the condensed consolidated statements of operations was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 (1) 2016 2015 (1) Service costs $ $ $ $ Sales and marketing Product development General and administrative Total stock-based compensation $ $ $ $ (1) Certain 2015 personnel costs, including stock-based compensation, were reclassified out of general and administrative to service costs, sales and marketing and product development to conform to 2016 presentation. See Note 2 for additional information. During the three months ended June 30, 2016, we accelerated the vesting of certain stock awards in connection with the sale of our Cracked business, resulting in approximately $0.8 million in stock-based compensation expense. Award Activity Stock Options Stock option activity is as follows (in thousands): Number of options outstanding Outstanding at December 31, 2015 Options granted Options exercised Options forfeited or cancelled Outstanding at June 30, 2016 Restricted Stock Units Restricted stock unit activity is as follows (in thousands): Number of shares Unvested at December 31, 2015 Granted Vested Forfeited Unvested at June 30, 2016 Employee Stock Purchase Plan In May 2011, we commenced our first offering under the Employee Stock Purchase Plan (“ESPP”), which allows eligible employees to purchase, through payroll deductions, a limited amount of our common stock at a 15% discount to the lower of market price as of the beginning or ending of each six-month purchase period. Participants can authorize payroll deductions for amounts up to the lesser of 15% of their qualifying wages or the statutory limit under the U.S. Internal Revenue Code. We previously suspended the ESPP after the November 2015 purchase after considering the benefits and participation rates in the ESPP. We restarted offerings under the ESPP in May 2016. The ESPP currently provides for a 12 -month offering period which is comprised of two consecutive six -month purchase periods, one from May to November and the other from November to May. A maximum of 500 shares of common stock may be purchased by each participant during each six-month purchase period. The fair value of the ESPP options granted is determined using a Black-Scholes-Merton model and is amortized over the remaining life of the 12 -month offering period of the ESPP. The Black-Scholes-Merton model included an assumption for expected volatility of between 41% and 48% for each of the two purchase periods in the current offering period. The expense recognized in relation to the ESPP was not material for each of the six month periods ended June 30, 2016 and 2015. Approximately 1.7 million shares of common stock remained authorized for issuance under the ESPP at June 30, 2016.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity	10. Stockholders’ Equity Stock Repurchases Under our stock repurchase plan, as amended in February 2012, we are authorized to repurchase up to $50.0 million of our common stock from time to time. As of June 30, 2016, approximately $19.2 million remained available under the repurchase plan. In June 2016, we disclosed that we are considering repurchasing up to $5.0 million of our common stock through the end of 2016 and, subsequent to June 30, 2016, we re-initiated purchases of our common stock under the stock repurchase plan. The timing and actual number of shares repurchased will depend on various factors including price, corporate and regulatory requirements, alternative investment opportunities and other market conditions. Shares repurchased by us are accounted for when the transaction is settled. As of June 30, 2016, there were no unsettled share repurchases. The par valu e of shares repurchased and retired is deducted from common stock and any excess over par value is deducted from additional paid-in capital. Direct costs incurred to repurchase the shares are included in the total cost of the shares.

Acquisitions and Dispositions

Acquisitions and Dispositions	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Acquisitions and Dispositions	11. Acquisitions and Dispositions Dispositions On April 12, 2016, we completed the sale of substantially all of the assets relating to our Cracked business, including the Cracked.com humor website, to Scripps Media, Inc. for a cash purchase price of $39.0 million. A portion of the purchase price equal to $3.9 million was placed into escrow at closing to secure certain of our post-closing indemnification obligations. Any remaining portion of the escrow amount that is not subject to then-pending claims will be paid to us in July 2017, on the 15 -month anniversary of the closing date of the sale . Revenue for the Cracked business for the three and six month periods ended June 30, 2016 (through the sale date of April 12, 2016) was $0.2 million and $1.8 million, respectively. The Cracked business had a pre-tax loss of $1.0 million and $1.9 million for the three and six month periods ended June 30, 2016 (through the sale date of April 12, 2016), respectively, excluding allocations for corporate costs and including stock-based compensation expense incurred in connection with the sale . Revenue for the Cracked business for the three and six month periods ended June 30, 2015 was $2.9 million and $5.4 million, respectively. The Cracked business had pre-tax income of $1.0 million and $1.6 million for the three and six month periods ended June 30, 2015 , respectively, excluding allocations for corporate costs. The sale did not meet the definition of discontinued operations under ASC 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. As a result of the sale of the Cracked business, we recognized a gain of $38.1 million, recorded in other income, net, which included $0.6 million in net assets sold and $0.3 million in transaction costs incurred in connection with the sale. We expect to utilize our existing net operating losses to offset the income tax associated with the gain resulting from the sale of the Cracked business . If all or a portion of our net operating loss carryforwards are subject to limitation because it is determined that we had previously experienced an “ownership change” as defined in section 382 of the Internal Revenue Code of 1986, as amended, our future cash flows could be adversely impacted due to increased tax liability. In addition, during the six months ended June 30, 2016, we sold one of our non-core online properties for total consideration of $1.0 million, resulting in a gain of $1.0 million, recorded in other income, net. During the six months ended June 30, 2015, we sold our Pluck social media business for $3.8 million in cash after working capital adjustments, resulting in a gain of $2.1 million.

Business Segments

Business Segments	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Business Segments	12. Business Segments We operate in one operating segment. Our chief operating decision maker (the “CODM”) manages our operations on a consolidated basis for purposes of evaluating financial performance and allocating resources. The CODM reviews separate revenue information for the Marketplaces and Content & Media service offerings. All other financial information is reviewed by the CODM on a consolidated basis. All of our principal operations and assets are located in the United States. Revenue derived from our Marketplaces and Content & Media service offerings is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Marketplaces $ $ $ $ Content & Media Total revenue $ $ $ $ Revenue by geographic region, as determined based on the location of our customers or anticipated destination of use, is as follows: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Domestic $ $ $ $ International Total revenue $ $ $ $

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value	13. Fair Value Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. · Level 1—valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow a company to sell its ownership interest back at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities or funds. · Level 2—valuations for assets and liabilities traded in less active dealer or broker markets, such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active. Level 2 includes U.S. Treasury, U.S. government and agency debt securities, and certain corporate obligations. Valuations are usually obtained from third-party pricing services for identical or comparable assets or liabilities. · Level 3—valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. We report certain financial assets and liabilities at their carrying amounts. The carrying amounts of our financial instruments, which include cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued liabilities and customer deposits, approximate fair value because of their short maturities. Certain assets, including goodwill and intangible assets, are also subject to measurement at fair value on a nonrecurring basis, if they are deemed to be impaired as the result of an impairment review. We have Level 1 financial assets measured at fair value consisting of money market funds in the amount of $5.0 million as of June 30, 2016 and December 31, 2015. These assets are included in cash and cash equivalents in the accompanying condensed consolidated balance sheet .

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	14. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net income (loss) $ $ $ $ Weighted average common shares outstanding—basic Dilutive effect of common stock equivalents — — Weighted average common shares outstanding—diluted Earnings (loss) per share Basic $ $ $ $ Diluted $ $ $ $ For the three months ended June 30, 2016 and 2015, we excluded 3.3 million and 4. 2 million shares, respectively, and for the six months ended June 30, 2016 and 2015, we excluded 3.4 million and 4.1 million shares, respectively, from the calculation of diluted weighted average common shares outstanding, as their inclusion would have been antidilutive.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events On July 7, 2016, we completed the acquisition of the entire issued share capital of Other Art Fairs Ltd, which operates as The Other Art Fair, for consideration of £1.1 million (approximately $1.5 million) in cash, excluding deferred consideration of up to £315,000 in cash. The Other Art Fair is a leading London-based art fair for discovering emerging artists that currently presents fairs in London, Bristol and Sydney. The Other Art Fair will operate as part of our Marketplaces service offering, complementing our Saatchi Art business . We are currently in the process of allocating the purchase price to the individual assets and liabilities acquired.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	The accompanying interim condensed consolidated balance sheet as of June 30, 2016, the condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss) for the three and six month periods ended June 30, 2016 and 2015, the condensed consolidated statements of cash flows for the six month periods ended June 30, 2016 and 2015 and the condensed consolidated statement of stockholders’ equity for the six month period ended June 30, 2016 are unaudited. In the opinion of management, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair statement of our statement of financial position as of June 30, 2016, our results of operations for the three and six month periods ended June 30, 2016 and 2015, and our cash flows for the six month periods ended June 30, 2016 and 2015. The results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results expected for the full year. The consolidated balance sheet as of December 31, 2015 has been derived from our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States, for interim financial information and with the instructions from the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. During the first quarter of 2016, we reclassified certain personnel costs, including stock-based compensation, primarily relating to individuals serving in management roles for specific businesses, from general and administrative expense to either service costs, sales and marketing or product development, to better reflect the respective functions of these individuals. Certain prior period amounts have been reclassified to conform to the current period presentation, resulting in the following changes in our condensed consolidated statement of operations for the three and six month periods ended June 30, 2015, respectively: (i) decreases of $0.7 million and $1.7 million in general and administrative expense; (ii) increases of $0.5 million and $1.2 million in product development expense; (iii) increases of $0.2 million and $0.4 million in sales and marketing expense; and (iv) increases of less than $0.1 million and $0.2 million in service costs.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Demand Media and its wholly owned subsidiaries. Acquisitions are included in our consolidated financial statements from the date of the acquisition. Our purchase accounting resulted in all assets and liabilities of acquired businesses being recorded at their estimated fair values on the acquisition dates. All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue; allowance for doubtful accounts; the assigned value of acquired assets and assumed liabilities in business combinations; useful lives and impairment of property and equipment, intangible assets, goodwill and other assets; the fair value of equity-based compensation awards; and deferred income tax assets and liabilities. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of our assets and liabilities.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers , which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The original effective date for ASU 2014-09 would have required the Company to adopt this standard beginning in the first quarter of fiscal 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company has the option to not adopt the standard until the first quarter of fiscal 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on the consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting Measurement-Period Adjustments . This update simplifies the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. Under this update, the adjustments are recognized in the reporting period in which the adjustment amounts are determined. This update is effective for the Company commencing in the first quarter of fiscal 2016 and should be applied prospectively. The Company adopted the standard effective January 1, 2016, and there has been no impact to the consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . This amended guidance requires an entity to present deferred tax assets and liabilities as noncurrent in the statement of financial position. The amended guidance is effective for the Company commencing in the first quarter of fiscal 2018. Early adoption is permitted and the guidance may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company elected to prospectively adopt the standard effective January 1, 2016 and believes the application of the guidance simplifies and improves the usefulness of deferred tax information for users of the Company’s financial statements. No prior periods were retrospectively adjusted. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This update will require lease assets and lease liabilities to be recognized on the balance sheet and disclosure of key information about leasing arrangements. This guidance is effective for the Company commencing in the first quarter of fiscal 2019 and must be adopted using a modified retrospective transition, and provides for certain practical expedients. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . This standard makes several modifications to Topic 718 related to the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for the Company commencing in the first quarter of fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following (in thousands): June 30, December 31, 2016 2015 Computers and other related equipment $ $ Purchased and internally developed software Furniture and fixtures Leasehold improvements Less accumulated depreciation Property and equipment, net $ $
Schedule of Depreciation Expense	Depreciation and software amortization expense, which includes losses on disposal of property and equipment of approximately $0.3 million for each of the three month periods ended June 30, 2016 and 2015, and $1.2 million and $0.6 million for the six month periods ended June 30, 2016 and 2015, respectively, is shown by classification below (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service costs $ $ $ $ Sales and marketing Product development General and administrative Total depreciation $ $ $ $

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consisted of the following (in thousands): June 30, 2016 Gross carrying Accumulated Net carrying amount amortization amount Customer relationships $ $ $ Artist relationships Media content Technology Non-compete agreements Trade names $ $ $ December 31, 2015 Gross carrying Accumulated Net carrying amount amortization amount Customer relationships $ $ $ Artist relationships Media content Technology Non-compete agreements Trade names $ $ $
Amortization Expense by Classification	Total amortization expense for the periods shown below includes (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service costs $ $ $ $ Sales and marketing Product development General and administrative Total amortization $ $ $ $

Accrued Expenses and Other Cu26

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Other Balance Sheet Items
Schedule of Accrued Expenses and Other Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2016 2015 Accrued payroll and related items $ $ Artist payables Other Accrued expenses and other current liabilities $ $
Schedule of Changes to the Severance Accrual	Changes to the severance accrual during the six months ended June 30, 2016 are as follows (in thousands): Balance at December 31, 2015 $ New charges Cash payments Balance at June 30, 2016 $

Stock-based Compensation Plan27

Stock-based Compensation Plans and Awards (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation Expense	Stock-based compensation expense related to all employee and non-employee stock-based awards recognized in the condensed consolidated statements of operations was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 (1) 2016 2015 (1) Service costs $ $ $ $ Sales and marketing Product development General and administrative Total stock-based compensation $ $ $ $ (1) Certain 2015 personnel costs, including stock-based compensation, were reclassified out of general and administrative to service costs, sales and marketing and product development to conform to 2016 presentation. See Note 2 for additional information. During the three months ended June 30, 2016, we accelerated the vesting of certain stock awards in connection with the sale of our Cracked business, resulting in approximately $0.8 million in stock-based compensation expense.
Stock Options Activity	Stock option activity is as follows (in thousands): Number of options outstanding Outstanding at December 31, 2015 Options granted Options exercised Options forfeited or cancelled Outstanding at June 30, 2016
Restricted Stock Unit Activity	Restricted stock unit activity is as follows (in thousands): Number of shares Unvested at December 31, 2015 Granted Vested Forfeited Unvested at June 30, 2016

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Business Segments Summary of Revenue	Revenue derived from our Marketplaces and Content & Media service offerings is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Marketplaces $ $ $ $ Content & Media Total revenue $ $ $ $
Summary of Revenue by Geographic Region	Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Domestic $ $ $ $ International Total revenue $ $ $ $

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net income (loss) $ $ $ $ Weighted average common shares outstanding—basic Dilutive effect of common stock equivalents — — Weighted average common shares outstanding—diluted Earnings (loss) per share Basic $ $ $ $ Diluted $ $ $ $

Company Background and Overvi30

Company Background and Overview - Additional Information (Details)	6 Months Ended
	Jun. 30, 2016segment
Other Balance Sheet Items
Number of service offerings	2
Number of marketplace	2

Basis of Presentation - Prior P

Basis of Presentation - Prior Period Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basis Of Presentation And Significant Accounting Policies [Line Items]
General and administrative expense	$ 7,422	$ 9,234	$ 15,952	$ 18,583
Product development expense	5,348	6,571	10,962	13,607
Sales and marketing expense	7,254	4,947	13,249	9,741
Cost of services	$ 6,676	9,550	$ 14,847	19,699
Reclassification
Basis Of Presentation And Significant Accounting Policies [Line Items]
General and administrative expense		(700)		(1,700)
Product development expense		500		1,200
Sales and marketing expense		200		400
Cost of services		$ 100		$ 200

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 43,104	$ 60,175
Less accumulated depreciation	(31,124)	(45,607)
Property and equipment, net	11,980	14,568
Computer and Other Related Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	8,621	16,588
Purchased and Internally Developed Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	26,312	34,868
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,467	1,423
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 6,704	$ 7,296

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property Plant And Equipment [Abstract]
Loss on disposal of property and equipment	$ 0.3	$ 0.3	$ 1.2	$ 0.6

Property and Equipment - Sche34

Property and Equipment - Schedule of Depreciation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property Plant And Equipment [Line Items]
Depreciation	$ 1,743	$ 2,434	$ 4,442	$ 5,273
Service Costs
Property Plant And Equipment [Line Items]
Depreciation	864	1,125	2,328	2,622
Sales and Marketing
Property Plant And Equipment [Line Items]
Depreciation	13	17	26	37
Product Development
Property Plant And Equipment [Line Items]
Depreciation	33	50	74	107
General and Administrative
Property Plant And Equipment [Line Items]
Depreciation	$ 833	$ 1,242	$ 2,014	$ 2,507

Intangible Assets - Components

Intangible Assets - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 120,171	$ 122,353
Accumulated amortization	(104,977)	(101,021)
Net	15,194	21,332
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	1,628	1,628
Accumulated amortization	(1,267)	(1,107)
Net	361	521
Artist Relationships
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	11,719	11,719
Accumulated amortization	(10,077)	(8,340)
Net	1,642	3,379
Media content
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	93,613	95,785
Accumulated amortization	(86,240)	(85,018)
Net	7,373	10,767
Technology
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	5,854	5,854
Accumulated amortization	(3,356)	(2,842)
Net	2,498	3,012
Non-compete agreements
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	217	217
Accumulated amortization	(197)	(160)
Net	20	57
Trade Names
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	7,140	7,150
Accumulated amortization	(3,840)	(3,554)
Net	$ 3,300	$ 3,596

Intangible Assets - Amortizatio

Intangible Assets - Amortization Expense by Classification (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 3,114	$ 7,225	$ 6,146	$ 11,936
Service Costs
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	1,786	5,879	3,486	8,714
Sales and Marketing
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	948	949	1,897	1,965
Product Development
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	246	246	493	947
General and Administrative
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 134	$ 151	$ 270	$ 310

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Service Costs
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 0.4	$ 3.3	$ 0.5	$ 3.3

Other Assets - Other Assets (De

Other Assets - Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Other Assets [Line Items]
Long-term assets	$ 4,950	$ 1,173
Other long-term assets | Standby Letter of Credit
Other Assets [Line Items]
Restricted cash	1,000
Sold | Other long-term assets | Cracked
Other Assets [Line Items]
Restricted cash	$ 3,900

Accrued Expenses and Other Cu39

Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued payroll and related items	$ 4,535	$ 5,916
Artist payables	2,315	2,816
Other	5,801	6,437
Accrued expenses and other current liabilities	$ 12,651	$ 15,169

Accrued Expenses and Other Cu40

Accrued Expenses and Other Current Liabilities - Severance Costs (Details) - Reductions in force - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 1,700
Accrued expense	1,020	$ 485
Accrued expenses and other current liabilities
Restructuring Cost and Reserve [Line Items]
Accrued expense	1,000
Sales and Marketing
Restructuring Cost and Reserve [Line Items]
Severance costs	700
Product Development
Restructuring Cost and Reserve [Line Items]
Severance costs	600
Service Costs
Restructuring Cost and Reserve [Line Items]
Severance costs	300
General and Administrative
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 100

Accrued Expenses and Other Cu41

Accrued Expenses and Other Current Liabilities - Severance Costs Rollforward (Details) - Reductions in force $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 485
New charges	1,690
Cash payments	(1,155)
Ending balance	$ 1,020

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details)	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
Date of lease expiration beginning period	2018-02
Date of lease expiration ending period.	2020-02

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	Apr. 12, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit)		$ 69	$ 10	$ 80	$ 32
Gain on disposals				39,149	2,908
Uncertain income tax positions				$ 0	$ 0
Other income, net | Sold | Cracked
Income Tax Disclosure [Abstract]
Gain on disposals	$ 38,100

Stock-based Compensation Plan44

Stock-based Compensation Plans and Awards - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation included in net loss	$ 2,519	$ 1,889	$ 4,438	$ 4,124
Accelerated compensation cost	800
Service Costs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation included in net loss	650	310	912	624
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation included in net loss	233	153	441	352
Product Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation included in net loss	517	461	916	1,179
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation included in net loss	$ 1,119	$ 965	$ 2,169	$ 1,969

Stock-based Compensation Plan45

Stock-based Compensation Plans and Awards - Stock Options Activity (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2016shares
Number of options outstanding
Outstanding beginning balance	3,199
Options granted	147
Options exercised	(20)
Options forfeited or canceled	(341)
Outstanding ending balance	2,985

Stock-based Compensation Plan46

Stock-based Compensation Plans and Awards - Restricted Stock Unit Activity (Details) - Restricted stock units (RSUs) shares in Thousands	6 Months Ended
	Jun. 30, 2016shares
Restricted stock unit, Shares
Unvested beginning balance	977
Granted	1,796
Vested	(449)
Forfeited	(307)
Unvested ending balance	2,017

Stock-based Compensation Plan47

Stock-based Compensation Plans and Awards - Employee Stock Purchase Plan - (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2011	Jun. 30, 2016USD ($)shares	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)itemshares	Jun. 30, 2015USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense | $		$ 2,519	$ 1,889	$ 4,438	$ 4,124
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, discount from market price, lower of purchase and offer date	15.00%
Participants maximum payroll deductions percentage	15.00%
Duration of each offering period				12 months
Number of purchase periods in each offering period | item				2
Duration of each purchase period				6 months
Maximum number of common stock shares may be purchased by each participant				500
Fair value assumptions, expected volatility, minimum				41.00%
Fair value assumptions, expected volatility, maximum				48.00%
Number of common stock shares remaining authorized for issuance		1,700,000		1,700,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016	Feb. 08, 2012
Stockholders Equity Note [Line Items]
Authorized amount to repurchase			$ 50
Stock repurchase remaining authorized amount		$ 19.2
Repurchases unsettled, Shares		0
Scenario, Forecast | Common Stock | Maximum
Stockholders Equity Note [Line Items]
Common stock that may be repurchased and held in treasury, value	$ 5

Acquisitions and Dispositions -

Acquisitions and Dispositions - Dispositions (Details) $ in Thousands	Apr. 12, 2016USD ($)	Apr. 12, 2016USD ($)	Jun. 30, 2016USD ($)item	Apr. 12, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)
Dispositions
Cash received from disposal of businesses and online properties, net of cash disposed						$ 35,906	$ 3,831
Gain on disposal of businesses and online properties						39,149	2,908
Revenue			$ 24,435		$ 29,768	51,404	62,978
Pre-tax income (loss)			$ 24,536		(14,398)	$ 12,638	(21,125)
Pluck Social Media | Sold
Dispositions
Cash received from disposal of businesses and online properties, net of cash disposed							3,800
Gain on disposal of businesses and online properties							2,100
Certain non-core online properties | Sold
Dispositions
Number of properties disposed | item			1			1
Total consideration received			$ 1,000			$ 1,000
Cracked | Sold
Dispositions
Total consideration received	$ 39,000	$ 39,000		$ 39,000
Net assets sold	600	600		600
Transaction costs incurred during sale		300
Escrow Deposit	3,900	$ 3,900		3,900
Term of escrow from closing date		15 months
Revenue	200			1,800	2,900		5,400
Pre-tax income (loss)	$ (1,000)			$ (1,900)	$ 1,000		$ 1,600
Other income, net | Certain non-core online properties | Sold
Dispositions
Gain on sale of certain non-core online properties						$ 1,000
Other income, net | Cracked | Sold
Dispositions
Gain on disposal of businesses and online properties		$ 38,100

Business Segments - Number of O

Business Segments - Number of Operating Segments (Details)	6 Months Ended
	Jun. 30, 2016segment
Segment Reporting [Abstract]
Number of operating segments	1

Business Segments - Summary of

Business Segments - Summary of Revenue by Service Offerings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Entity Wide Information Revenue From External Customer [Line Items]
Total revenue	$ 24,435	$ 29,768	$ 51,404	$ 62,978
Content And Media
Entity Wide Information Revenue From External Customer [Line Items]
Total revenue	11,026	19,261	24,533	41,786
Marketplaces
Entity Wide Information Revenue From External Customer [Line Items]
Total revenue	$ 13,409	$ 10,507	$ 26,871	$ 21,192

Business Segments - Summary o52

Business Segments - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 24,435	$ 29,768	$ 51,404	$ 62,978
Domestic
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	19,526	25,357	41,506	54,125
International
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 4,909	$ 4,411	$ 9,898	$ 8,853

Fair Value of Financial Instrum

Fair Value of Financial Instruments - Fair Value, Financial Assets, Recurring (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Measurements, Recurring | Money Market Funds | Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	$ 5	$ 5

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 24,467	$ (14,408)	$ 12,558	$ (21,157)
Weighted average common shares outstanding - basic	20,389	19,841	20,301	19,807
Dilutive effect of common stock equivalents	290		217
Weighted average common shares outstanding - diluted	20,679	19,841	20,518	19,807
Earnings (loss) per share
Basic	$ 1.20	$ (0.73)	$ 0.62	$ (1.07)
Diluted	$ 1.18	$ (0.73)	$ 0.61	$ (1.07)

Net Loss Per Share - Additional

Net Loss Per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Antidilutive common stock equivalent shares excluded from calculation of diluted net income (loss) per share (in shares)	3.3	4.2	3.4	4.1

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Jul. 07, 2016 - The Other Art Fair [Member] - Subsequent Event $ in Millions	GBP (£)	USD ($)
Subsequent Event [Line Items]
Purchase consideration, cash	£ 1,100,000	$ 1.5
Maximum
Subsequent Event [Line Items]
Deferred consideration	£ 315,000