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Demand Media Sets Price for First Venture IPO of 2011

Demand Media Inc., which employs freelance workers who contribute low-cost stories and videos to websites, set the asking price for its initial public offering in what would be 2011’s first U.S. venture capital-backed IPO.

The Santa Monica, California-based company, run by former MySpace Inc. Chairman Richard Rosenblatt, plans to raise $120 million selling shares for $14 to $16 each on Jan. 25, its filing with the Securities and Exchange Commission and data compiled by Bloomberg show. Owners will get 40 percent of the proceeds, while Demand Media intends to use the rest to invest in product development and international expansion.