Demand Media has submitted another amended S-1 to the Securities and Exchange Commission, part of its march to an initial public offering many had expected to take place sooner rather than later.
What’s taken so long, said multiple sources familiar with the situation, has been discussions between government regulators and the Santa Monica online content company about how to more fully explain to investors, how it expenses the costs of making its content. Currently, using a concept of “long-lived” content, Demand has been amortizing those expenses over five years, since it says it continues to generate revenue on that material over that much time.
Demand’s initial filing was to raise $125 million at a reported $1.5 billion valuation. It had said it hoped to have DMD as its ticker symbol on the New York Stock Exchange. There is no price range yet for the offering, which is being led by Goldman Sachs and Morgan Stanley.
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