Demand Media on Monday said that it will spend up to $25 million to buy back shares.

Under the buyback program, Demand Media’s board authorized management to purchase shares on the open market or in negotiated transactions, with the timing and volumes based on management’s discretion.

“This share repurchase program reflects confidence in our business and our commitment to maximize shareholder value,” Demand Media Chief Executive Richard Rosenblatt said in a statement.

Santa Monica-based Demand Media hires freelance writers to produce articles for Web sites with key words and phrases so the sites will earn high positions in Web searches. Of the 10 analysts who cover the company, seven recommend buying the stock and three are neutral. However, since mid-June the shares have lost 48 percent of their value as investors worry that recent changes in Google’s search engine will adversely affect the effectiveness of Demand Media’s strategy.

Shares closed up 62 cents, or 8.6 percent, to $7.81 on the New York Stock Exchange