Demand Media Files IPO


Demand Media Inc., a growing Santa Monica media company that creates Internet content tailored to advertisers, filed on Friday for an initial public offering.

The company proposes to raise up to $125 million but did not list a share price range or a timetable for the offering. The money would be used to expand its operations internationally and various general business purposes, according to the prospectus filed with the Securities and Exchange Commission.

Headed by former MySpace Chief Executive Richard Rosenblatt, Demand employs software programs and a stable of freelance writers to generate thousands of articles and videos on niche topics that it posts daily on its network of 350 websites. Among the sites are, a site devoted to how-to content, and health-oriented It also operates domain name registration business eNom.

The company has been criticized by traditional media publishers for creating low-quality content, but the company had a breakthrough in April when it announced a deal with Gannett Inc. to supply travel articles to USA Today’s website. The two companies will share in the advertising revenue.

Demand said some of the money raised would be used to improve the software program it uses to assist its editors and writers produce articles. The program sifts through data on search engines to determine what kinds of topics are of interest to Web viewers.

The company, founded in 2006, has yet to show a profit. It reported a net loss of $6 million in the first half of 2010 on revenue of $114 million, according to the filing.

Goldman Sachs and Morgan Stanley will act as lead co-lead underwriters of the offering.

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