Demand Media Announces Closing of IPO

YadaYadaAdmin Community Posts 7 Comments

Last week, Demand Media launched its initial public offering. Today, the company announced the closing of the IPO of 10,235,000 shares of common stock at $17.00 per share. From the release:

Demand Media sold 5,175,000 shares of common stock, and the selling stockholders sold 5,060,000 shares of common stock in the offering. Demand Media received net proceeds of approximately $77.2 million from the sale of its shares, after deducting the underwriting discount and estimated offering expenses. Demand Media intends to use the net proceeds for investments in content, international expansion, working capital, product development, sales and marketing activities, general and administrative matters and capital expenditures. Demand Media will not receive any of the proceeds from the sale of shares of common stock by the selling stockholders.

After the launch, it didn’t take long for Demand Media to rack up a valuation surpassing even the New York Times, with a market cap of $1.8 billion, according to reports. 

The question still remains, however, whether Demand will be able to live up to its high valuation, with a model that greatly depends on Google, who has been talking about shifting the focus of its webspam reduction efforts to "content farms". It’s been debated whether or not "content farms" refers to sites such as those from Demand Media, and I’m not going to repeat the spiel here. If you want to see a variety of takes on the topic, read the following articles and reader comments that go with them:

 
 
 

Demand Media Properties

The bottom line is that Google has been silent on whether or not Demand’s sites are considered content farms by their standards, though a simple Google search for the phrase "content farm" will bring you up numerous results mentioning Demand Media. 

We may see more quality content (or at least content perceived as such) coming from Demand Media in the future, as the company will reportedly seek to acquire premium content sites. They’ve already tapped celebrities (like Tyra Banks) in the past, so it would not be surprising to see more moves like that.  



Comments 7

  1. Why do liberals and self proclaimed leftists overstate the importance of Obama closing Guantanamo?
    while their newfound hero leaves the framework of torture, indefinite detention intact?
    While the media is portraying these orders as a repudiation of the detention and interrogation policies of the Bush administration, they actually change little. They essentially represent a public relations effort to refurbish the image of the United States abroad after years of torture and extralegal detentions and shield high-ranking American officials from potential criminal prosecution.
    The orders signed by Obama do not undo the Bush administration’s attacks on constitutional and international law. They do not challenge the supposed right of the president to unilaterally imprison any individual, without trial and without charges, by declaring him to be an “enemy combatant.” Nor do they end the procedure known as “extraordinary rendition,” by which the United States during the Bush years kidnapped alleged terrorists and shipped them to foreign countries or secret CIA prisons outside the US, where they were subjected to torture.
    They do not affect the hundreds of prisoners—600 at the Bagram prison camp in Afghanistan alone—incarcerated beyond the barbed wire of Guantánamo. If and when Guantánamo is closed, the US government will simply ship alleged terrorists caught up its international dragnet to other American-run prison camps.
    On the question of so-called “harsh interrogation techniques,” i.e., torture, Obama’s orders leave room for their continuation. White House Counsel Gregory Craig told reporters the administration was prepared to take into account demands from the CIA that such methods be allowed. Obama announced the creation of a task force that will consider new interrogation methods beyond those sanctioned by the Army Field Manual, which now accepts 19 forms of interrogation, as well as the practice of extraordinary rendition.
    http://www.wsws.org/articles/2009/jan2009/guan-j23.shtml
    Phill, you don’t know the law. Torture is always a crime. Here’s a comprehensive overview
    http://www.hrw.org/legacy/english/docs/2004/05/24/usint8614.htm
    I could suggest a lot of things but don’t want to insult you. I’m sure you mean well and we’ve all been there.

    Torture is never legal, Bush comitted crimes, hope you understand that some day
    Truth seeker, with all due respect the right is doing what they always do. It’s the reason I don’t take the American right serious, you know that but are you honestly blind for how liberals are spinning this?
    Even if Obama did end torture, that wouldn’t make him a hero. To follow the law should be the norm, not a reason to be celebrated or worshipped. Better than Bush, is that the norm now?
    At some point you have to question your own side. Republicans are politically irrelevant at this point, the usual absurdity of the far right fringe even more. Why focus on them, Democrats are in charge my friend.

  2. Not true…he also is closing the overseas prisons…heard it last night on the news
    References :

  3. because as you so accurately point out, American Liberals are as persuaded by the corporate media as their far right counter parts. What most refuse to acknowledge is that we have a one party system with two factions.. and that very few a handful in fact of our Elected officials are not part of the Military Industrial Complex and the corporate stranglehold that dominates both American policy as well as our geopolitical Posturings abroad..

    we are the beta test group for the coming franchise that will be a One World Government… that almost certainly will be run by Heads of Industry and Banks etc.

    edit: and what about spying on Americans ?.. with Obamas Pledge to look forward, how will we deal with the precedent set by the BushCo and the Clintonistas in regards to the right to Privacy ?

    "National Security Agency whistleblower Russell Tice has revealed new details on the Bush administration’s warrantless spy program. Speaking on MSNBC, Tice said government spying extended to virtually all Americans under the false pretense of trying to weed out those not suspected of terrorist activity"

    Russell Tice: “In one of the operations that I was in, we looked at organizations just supposedly so that we would not target them, so that we knew where they were, as not to have a problem with them. Now, what I was finding out, though, is that the collection on those organizations was 24/7 and, you know, 365 days a year, and it made no sense. And that’s—I started to investigate that. That’s about the time when they came after me to fire me. But an organization that was collected on were US news organizations and reporters and journalists.”
    References :

  4. You need to read this to see it clearly, its featured on Yahoo news:
    http://news.yahoo.com/s/ap/20090123/ap_on_re_mi_ea/ml_yemen_al_qaida

    Also, he is not actually closing Gitmo, just removing the detainees. Gitmo is used for other hings such as a Navy refueling base for ships stationed in the Caribbean. So he isn’t technically closing Gitmo, just removing detainees from there.

    2009…-
    He is not closing the other prisons. Thats why its controversial, removig detainees from Gitmo is more symbolic than anything. Many of these other prisons are run by other countries, we just staff them and utilize the facilities, but the detainees are under the control of that countries gov’t. Such as the prisons in Iraq arre under Iraqi jurisdiction and the prisons in Poland are under the Polish gov’t. But the US has CIA FBi etc staffing it.

    Lets not forget…..Congress gave Bush the OK to go over seas…so its not like Bush made the decision on his own, Congress had to approve, why aren’t we hoding them liable?

    I also find it funny that the EU wanted to "close" Gitmo but when asked to take in the displaced detainees they didnt want them, now they are keeping quiet on Gitmo.

    On Torture…
    Well first off Water-boarding is currently not listed as an act of torture. It`s currently legal. But c`mon making someone a little uncomfortable for a while to get information out…I say we gotta do what we gotta do. They even want to list solitary confinement as torture….just think of the reprecussions that will cause here..Almost every major US Prison has a solitary confinement cell. They say it is not humane for a person to e locked by themself in a cell. Give me a break. You do the crime you pay the time
    References :

  5. What Bush did was Constitutionally legal in a time of war. I don’t think he was a good President but what he did was legal.

    Having a "task force that will consider…" is basically letting all sides air out their concerns, tactics and questions. This is how you get people who are on different pages back to the same page.

    Yes, I am fully aware that this GITMO thing is a PR move…but its a needed PR move. There is nothing remotely wrong with having military prisons in nations we’re actively fighting in.

    What else do you suggest?
    ———————————————————

    I’m talking about the prisons being open still, which is what your also complaining about. Torture is torture is torture. You want to close all the military prisons down and that is simply unrealistic.
    References :

  6. I have to disagree with you a bit here. While I do agree that it won’t change things a whole lot, I do feel it is those on the so called right that are making a bigger deal of this. If have seen dozens of remarks, if not hundreds, stating that the closing of GITMO means that terrorists will be freed on the streets of America. This is far from the truth.

    **I agree that the spin is on, but I also think it is harmless. We have had a President that approved of torture, now that one comes along and disapproves of it, that is a good thing. And yes, he is just doing what is right and what his job is, but after years of the other, it is refreshing. When the spin starts coming out that damages us, I will jump in with both feet. I am not an Obamabot, he has to prove himself just like any other President.
    References :

  7. Don’t know as I’m not on the left but if you think State run concentration camps, torture, brain washing and imprisonment of people who are never charged after being kidnapped by your military can be ‘overstated’ you sure missed the boat not being in Germany 70 years ago! They didn’t win then either..
    References :

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