The chief government of Leaf Group, Sean Moriarty, stepped down from the function after 9 years final week because the media firm faces monetary headwinds and strain from its possession group, Graham Holdings Firm, to reverse its industrial struggles, in keeping with individuals aware of the matter.
A spokesperson for Graham Holdings Firm, Pinkie Mayfield, confirmed the departure.
Moriarty will likely be changed on an interim foundation by Timothy J. O’Shaughnessy, the president and CEO of Graham Holdings Firm and the husband of Laura Graham O’Shaughnessy, the granddaughter of Katharine Graham, the previous writer of The Washington Publish.
Moriarty has served as CEO of Leaf Group since 2014, the place he performed an instrumental function in reinventing the media firm as soon as often called Demand Media.
Fortunes reversed since thriving through the pandemic
After rebranding in 2016, Leaf Group embraced a industrial mannequin that blended commerce from its artwork marketplaces, Society6 and Saatchi Artwork, and promoting from its portfolio of publishers, which incorporates titles like Properly + Good, Livestrong and eHow.
The corporate noticed demand for its artwork marketplaces skyrocket through the early days of the pandemic, when a mixture of things, together with stay-at-home measures and stimulus checks, led customers to spend lavishly on dwelling renovation and decor.
Within the first quarter of 2021, Leaf Group noticed its total income rise 58% yr over yr, from $33 million to $52 million, in keeping with public filings. Income from Society6 alone rose 106% yr over yr, from $16 million to $33 million, whereas income from its media group declined barely, from $14.1 million to $13.9 million.
Though Leaf Group closed that quarter at a $6.3 million loss, its revenues had grown enormously and its deficit shrank by $4.4 million.
These optimistic trendlines helped persuade Graham Holdings Firm to accumulate Leaf Group in June 2021 for $348 million.
Graham Holdings Firm, which owns a portfolio of companies starting from restaurant teams to automobile dealerships, has an in depth background in media. It owns each Slate and Overseas Coverage, and it has purchased and bought each The Washington Publish and Newsweek.
Nonetheless, the circumstances that led revenues at Leaf Group to spike quickly started to recede.
As pandemic restrictions eased, shopper spending on dwelling renovation and decor dwindled, and urge for food for direct-to-consumer artwork providers like Society6 declined, in keeping with individuals aware of its funds. By October 2022, Society6 was on tempo to lose roughly $10 million on revenues of between $100 and $150 million.
