Demand Media Working With Goldman Sachs For Planning An IPO
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
Demand Media is working with Goldman Sachs Group, Inc. (NYSE:GS) to explore a potential IPO. Demand Media has raised a total of $355 million from Goldman Sachs, Spectrum Equity Investors, Generation Partners, and Oak Investment Partners. Demand was founded by former MySpace Chairman Richard Rosenblatt.
Demand Media has a system where they pay writers, programmers, videographers, amateur video recorders, etc. for assigned stories based on a software algorithm. The interest of the web visitors and the revenue generated from the content depends on how well they pay their freelancers. Demand Media receives about 4,000 video clips and articles on a daily basis. Demand is projected to make about $250 million this year. [FT.com]