A Big Deal for Demand

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Editor’s Note:

A version of this story appears in the Oct. 1 print edition.


Demand Media Inc., a 16-month-old startup headed by former MySpace chairman Richard Rosenblatt, has received an additional $100 million in funding.


Goldman Sachs Group Inc. led the second round of financing, along with previous investors, who had pumped Demand Media with $220 million last year.


Demand Media has bought a slew of well-traveled enthusiast Web sites, such as Trails.com, eHow.com and Gardenguides.com, tweaked them with cleaner interfaces and social networking tools and built traffic.


The sites, monetized with contextual advertisements, become powerful vehicles for advertisers who want a specialized audience. The Santa Monica-based company has bought 50 such sites so far and plans to use the new funds to buy more.

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