Demand Media Turns Down $1.2 Billion To Go Private
Allthingsd.com is reporting that Demand Media, Inc. (DMD) turned down $1.2 Billion dollars in a deal that would have taken the company private this past week.
The current market cap of Demand Media is $620 Million at the closing share price on Friday of around $7.25 a share. Demand is off 65% of its market cap when it went public at $17 a share.
“According to the report, “Demand Media was deep into discussions with a private equity firm to complete a deal that would have taken the online content company private for almost double its current value.”
“But Demand abandoned the effort this past week… due to a number of challenges, including complications related to its financing and the ability to retain executives in its aftermath.”
Demand Media is one of the largest company’s in the domain name space and of course owns Enom.com the world’s second largest domain registrar.
Its a interesting story and you should check it out here.