Demand Media – a company that controls 10 million web domains – targeting 138 million dollars from IPO

Demand Media, a company specializing in developing content for websites and web domain registration, wants to get 138 million dollars by listing on stock exchanges.

The company, which produces news and videos with different themes, which are posted on both web sites (such as eHow.com) and those owned by other companies like YouTube, will list 8.625 million shares, with a value of $ 14-16 each.
Stock exchange listing will be in New York. The company is valued at 1.25 billion dollars, down from last year when Demand Media worth $ 1.5 billion, according to company sources. Other IT companies will be listed on stock exchanges this year are the social networking company LinkedIn Groupon online.

Demand Media is led by Richard Rosenblatt, former chairman of the social network MySpace, which in 2005 sold the business to media giant News Corps, owned by mogul Rupert Murdoch. The company currently has 550 employees. The company’s revenue comes mainly from advertising, for the quarter ended Dec. 31 was worth 70 million euros.

To determine which topics are of interest to users, the company analyzes data from thousands of sources, from Internet searches to information collected by online advertising networks. The company also uses data from the second line of business, registration of domains. Demand Media manages over 10 million domains. The articles and videos are made by the 550 employees, but collaborators. Company establishes the themes of interest that are then “covered” by the approximately 10,000 freelancers working with Demand Media. If a freelance article proposal is accepted, he wrote the text and is then paid a cent per word. On average, more than 5,700 articles are written every day for the company.

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