Demand Media’s IPO Could Be Holiday Gift


money_small.jpgADOTAS – A few days into my Adotas tenure, I met a Demand Media executive in a foul mood surrounding Wired’s coverage of the company. The eviscerating feature painted Demand Media as a content sweatshop, producing 4,000 videos and articles daily — a lot of “how to” features — at very little cost for a lot of profit. Most of its cash comes in through traffic and advertising driven by Google and Yahoo (to a lesser extent).

And although the company has raised $355 million in funding, its revenue has been growing steadily over the last few year: $170.3 million in 2008, $198.5 million in 2009 and estimations of more than $230 million in 2010. So while the tech media may sneer at its model, can you imagine the investors salivating? It must be initial public offering time!

According to Kara Swisher at AllThingsD, today the company amended it’s S-1 to clear the path for an IPO. After the Securities and Exchange Commission clears the filing and if there’s investor interest, the shares could start going on sale as soon as the holidays. I’m sure many investors would consider it a great Christmas or Hanukkah gift — apparently Demand has brought in about $180 million in revenue in the first three quarters of 2010 alone.


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