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Description of Business
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
Description of Business
CommerceHub, Inc. ("CommerceHub", the "Company", "us", "we", and "our") operates as a single segment and specializes in the electronic integration of supply chains for e-commerce fulfillment. CommerceHub's solutions include supply, demand, and delivery solutions which provide our customers, consisting of retailers and suppliers, with a single platform to source and market the products consumers desire and to have those products delivered more rapidly to the consumer's doorstep.
The Company was founded in 1997 and serves its customers and users from its hosting facility, located at its headquarters in Albany, New York.
On January 8, 2015, CommerceHub acquired Mercent Corporation ("Mercent"), an e-commerce marketing solutions company headquartered in Seattle, Washington. This strategic acquisition expanded the range of our supported demand generation channels available to CommerceHub's customers to include major on-line marketplaces (e.g. Amazon, eBay), shopping engines (e.g. Google, PLA), and search engines (e.g. Google, Bing). The acquisition also provided CommerceHub with value-added technologies and services that enable our customers to more effectively sell on these channels.
Recent Events
Spin-Off from Liberty Interactive Corporation
During November 2015, the board of directors of Liberty Interactive Corporation ("Liberty" or "Parent") authorized a plan to distribute to the holders of Liberty's Series A and Series B Liberty Ventures common stock, shares of CommerceHub, Inc. (the "Spin-Off"), a newly formed Delaware corporation that, pursuant to an internal restructuring, effective July 21, 2016 became the parent of Commerce Technologies, LLC, a Delaware limited liability company that, as a result of the restructuring, is the successor to Commerce Technologies, Inc. ("CTI"), the entity through which CommerceHub transacted prior to the Spin-Off. The Spin-Off was completed on July 22, 2016 and was effected as a pro rata dividend of shares of CommerceHub to the stockholders of Series A and Series B Liberty Ventures common stock of Liberty. The Spin-Off was structured to be tax-free.
Following the Spin-Off, which occurred on July 22, 2016, CommerceHub now operates as a stand-alone publicly traded company, and neither Liberty nor CommerceHub has any stock ownership, beneficial or otherwise, in the other. In connection with the Spin-Off, CommerceHub entered into certain agreements (effective the date of the spin-off) with Liberty and/or Liberty Media Corporation ("Liberty Media"), which are further discussed in Note 8 to these condensed consolidated financial statements.