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12|23|2010 02:27 pm EDT

Demand Media IPO Stalled

by Frank Michlick in Categories: Up to the Minute

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As we had reported earlier this year, Demand Media, parent company of numerous registrars, websites and a domain parking company, was planning to file for an IPO in 2010. According to an article by CNNMoney, the IPO has now stalled due to the regulator’s questions regarding Demand Media’s accounting practices.

The company’s CEO, Richard Rosenblatt has always insisted that the company was profitable, but the IPO filing revealed a different story, showing that the company is in the red for at least for $6 million USD for 2010. One of the reasons the filings are being investigated is that Demand Media expenses the cost of content creation over the course of five years, stating that the average time period this content will generate revenue for is 5.4 years.

[via CNNMoney]

04|15|2010 09:50 pm EDT

Demand Media Investigating IPO with the help of Goldman Sachs

by Frank Michlick in Categories: News

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According to an article in the Financial Times, Demand Media has hired Goldman Sachs to explore an initial public offering. The company, founded by the former chairman of Myspace, Richard Rosenblatt, owns registrars eNom, BulkRegister, parking company Hotkeys and operates the NameJet drop catching site in partnership with Network Solutions. Aside from owning a domain portfolio, which includes a large number of expired domain names, the company also runs a user generated content production service called Demand Studios. The content is then published on Demand’s websites, such as eHow. The company’s freelance workers produce about 4,000 video clips and articles per day.