According to TechCrunch in a post published today, Demand Media, denies that is being shopped around for $1 billion or more.”
However TechCrunch acknowledges “Revenue rumors in the $200 million/year range aren’t far off ”
Of course Demand owns Enom.com, part of Namejet.com and a huge portfolio of domain names
Go check out the article and the comments that are sure to come.
Oversee.net could have sold for close to $1b easily.. They too had 2 strong years in 2007 and 2008 where they did $417,000,000 combined but that is all history now… Times have changed.
Question is how much of their success is from dotTV? They don’t seem to drink their own kool-aid
The magic number is much higher than this. Not a big fan of their content machine but they have some great assets. It’s interesting to watch them go head to head with AOL.
What do you mean the “magic number” is much higher ? The price companies are offering for demand media?
The article mentioned the revenue about not the profit, so anyone has an idea how much that is ?
I would disagree, look at the multiple bankrate sold for earlier this year and they have many more established brands, demand is so heavily tied into google search they really dont control their own destiny…they may be growing like gangbuster, but there is also a lot of risk for a potential acquiring company
What is making Demand Media a hot property is not Enom and Namejet but the content and traffic side.
1. It is the domains they own including eHow and the traffic they generate.
2. The content company in Texas they purchased and developed. However, that might be quickly discounted by the search engines because it is obvious it is fluff.
http://www.readwriteweb.com/archives/content_farms_impact.php
If the content is a house of cards, we will know within the next 90-150 days. How? If Richard Rosenblatt sells the company.
If the concept is solid, he will eventually take it IPO within the next 12-24 months.
Plus, it looks like a little bit of the dirty laundry is showing.
If there is one, there is more.
http://paidcontent.org/article/419-mania.com-founder-sues-demand-media-for-over-6-million-citing-despicabl/