The company, now led by Richard Rosenblatt, former president of the MySpace social network produces news and videos on various topics, which are posted both on their own sites (such as eHow.com) and those held by other companies like YouTube. Rosenblatt's salary, which in 2005 sold MySpace to News Corporation, Rupert Murdoch-owned media company, rose last year to 4.67 million dollars. Demand Media has 550 employees. Documents submitted to the Securities and Exchange Commission (SEC), the regulatory agency of the U.S. stock market does not provide details about the shares to be listed, but other sources claim that by listing on the stock company would be valued at $ 1.5 billion. Segment content, the company's business model is to produce large-scale content (articles and videos) on topics which are set according to the interests of consumers.
To determine which topics are of interest to users, the company analyzed data from thousands of sources, from Internet searches to information collected online advertising networks. The company also uses data from the second line of business, domain registration. The company manages over 10 million domain. Articles and videos are made by the 550 employees, but collaborators. The company establishes the themes of interest, which are then "claimed" by the approximately 10,000 freelancers working with Demand Media. If the proposal for a freelance article is accepted, he wrote the text and then paid a cent per word. On average, more than 5,700 articles are written daily on the company, according to documents submitted to the SEC. But the quality of articles produced by employees of the company was often criticized in particular the traditional media groups. Demand Media has had in the first quarter loss of $ 22.3 million on turnover of 114 million dollars. Company sources estimate turnover of 250 million dollars this year. Demand Media last year reported revenues of 198 million dollars and a net loss of $ 18 million. From beginning work in 2006, the company raised 355 million dollars funding. Among Demand Media investors include private equity firms Oak Investment Partners, Spectrum Equity Investors and W Capital Partners.
Demand Media is, like Yahoo, a company that seeks to develop a cheaper model for online content development. The company ranks among the top 17 largest online companies in the U.S., with 54.6 million unique visitors in June. Investment banks Goldman Sachs and Morgan Stanley leads the company's listing on the stock exchange, which will be underwritten and UBS, Allen & Co.., Jefferies & Co.., Stifel Nicolaus Weisel, RBC Capital Markets, Pacific Crest Securities, Raine Securities and Securities jmp . |