Event-Driven Stocks

Spin-offSpun off from Demand Media

The two companies

Parent
Services-Computer Processing & Data Preparation
↓ spun off ↓

Open either company's hub for its full SEC financials, ratios, ownership, filings, and every other event it's been part of.

Sector
Industrials
Industry
Services-Business Services, NEC
Exchange
State of incorporation
DE
Record date
Distribution date
August 1, 2014
Ratio
1:5
Parent sector
Services-Computer Processing & Data Preparation
Form
10-12B/A
Filed
July 14, 2014

Financials — parent vs spin-off

SEC XBRL · latest year
Demand MediaFY20
Revenue
$212M
Operating income
−$18M
Net income
−$9M
Total assets
$141M
Equity
$78M
RIGHTSIDE GROUP, LTD.FY16
Revenue
$17M
Operating income
Net income
−$5M
Total assets
$304M
Equity
$115M

Latest reported figures from each company's own SEC filings — the parent after the separation and the spin-off as a standalone. Full multi-year history on each company hub.

Spin-off signals

score 2/6 favorable · factors, not advice
  • Focus-increasingYes — Technology → Industrials

    Spin-offs into a different sector than the parent (pure-plays) have historically outperformed diversifying ones.

  • Size vs parent (revenue)~7.8% of parent

    Smaller spin-offs draw more forced selling from holders who can't keep them — the classic mispricing edge.

  • Leverage (liabilities/assets)62%

    A heavy debt load loaded onto the spin-off is a known risk; a clean balance sheet is favorable.

  • Tax-basis reportNone found

    A Form 8937 (basis allocation) accompanies tax-free §355 spin-offs — favorable for taxable holders.

  • Insider buying (post-spin)None recorded

    Officers/directors buying their own newly independent shares (Form 4) has historically preceded outperformance.

  • Time since spin-off11.8 years

    Studies find the spin-off return premium concentrates in roughly the first one to three years.

Factors the spin-off research literature (Greenblatt; Cusatis-Miles-Woolridge; Desai-Jain) associates with outcomes — computed from this company's own SEC filings, shown as factors, not a recommendation. The premium is debated and not guaranteed. How we compute these ↗

Filings & documents

Every entry traces to SEC EDGAR. The Information Statement is the primary source; the links below open the full filing and each company's complete filing history.