Monday, August 9, 2010
Demand Media Files For IPO
Santa Monica-based Demand Media, the online media firm run by Richard Rosenblatt, has finally filed for its long awaited IPO. According to the firm's filing, filed late Friday, the firm is looking to raised up to $125M in its IPO. The firm's IPO is being underwritten by Goldman, Sachs & Co., Morgan Stanley, UBS Investment Bank, Allen & Company LLC, Jefferies & Company, Stifel Nicolaus Weisel, RBC Capital Markets, Pacific Crest Securities, Raine Securities, and JMP Securities. According to Demand's IPO filing, the firm had a net loss of $6.00M on revenues of $114.0M in the first six months of 2010. For the year ended December 31, 2009, the firm had a net loss of $21.9M on revenues of $198.45M. The firm's major stockholders are Oak Investment Partners, Spectrum Equity, W Capital Partners, Goldman Sachs & Co., and Generation Partners. Among warrant holders of the firm's stock are Lane Armstrong and his foundation--which has lent Armstrong's backing of LiveStrong.com, the firm's health and fitness portal--Bobbi Brown; Tyra Banks--who recently started fashion site with Demand--and InfoSearch Media.
The filing indicates that the total venture capital funding by Demand Media now totals $373.75M, across four rounds of funding. For the six months ended June 30th, the firm reported that $66.2M of its revenues came from its Content & Media division, and $47.7M from domain registration. Demand now operates a wide spectrum of businesses, ranging from LIVESTRONG.com, which provides health and fitness content; eHow.com, which features how-to articles and videos; Trails.com, an online site for outdoor adventure; and Golflink, which features golf related content.