Demand Media, Maker of Social-Media Applications, Plans $125 Million IPO
Demand Media Inc., the developer of applications for social-media websites, plans to raise as much as $125 million in an initial public offering, it said in a filing with the Securities and Exchange Commission.
The Santa Monica, California-based company didn’t give a price range or expected date in yesterday’s filing for the sale, which will be led by Goldman Sachs Group Inc. and Morgan Stanley in New York.
The creator of content for sites on topics from fitness to travel was founded in 2006 with backing from Goldman Sachs, Oak Investment Partners in Palo Alto, California, and Spectrum Equity Investors in Menlo Park, California. Demand Media hasn’t posted a profit since its inception, the prospectus showed.
Demand Media’s announcement came after filings for U.S. IPOs climbed to the highest since 2007 last quarter and the Standard & Poor’s 500 Index posted its biggest monthly gain in a year in July.
The company hired Joanne Bradford, a senior vice president from Sunnyvale, California-based Yahoo! Inc., to be its chief revenue officer in March. Demand Media’s Chairman and Chief Executive Officer Richard Rosenblatt formerly worked for MySpace Inc. owner Intermix Media Inc. of Los Angeles before they were both bought by Rupert Murdoch’s News Corp. of New York in 2005, according to the prospectus.
Demand Media’s tools allow websites to add user profiles, discussion forums, blogs and photo and video sharing, according to the filing. EHow.com, livestrong.com, the National Football League’s website and the online version of the San Francisco Chronicle use the products, the prospectus said.
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