Demand Media Raises $100 Million; Funding Tally At $320 Million Now
Demand Media Inc. is a Santa Monica, Calif. based company that was founded by Richard Rosenblatt. Roseblatt was the former President of Intermix Media, parent company of MySpace. News Corp.’s Fox Interactive Media became the part company of MySpace when they acquired Intermix.
The company has raised a 3rd round of funding at $100 million by investment banking company, Goldman-Sachs. The previous investors include 3i Group, Generation Partners, Oak Investment Partners, and Spectrum Equity Partners [Source: alarm:clock]. Demand Media has raised a total of $320 million as of now.
So what does Demand Media actually do?
To be honest, I couldn’t really decipher what they do from their About Us page. “Demand Media is in the business of buying domain names with organic traffic (names with easy to remember names) and adding social networking features to them. Accordingly, they also own domain registrars eNom and BulkRegister” is how Mashable described them.
How they raised $320 million as a domain name brokerage business and what Demand Media will do with the money boggles my mind, but clearly being the guy who at one point ran MySpace means something to all these investors.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry