In a post today in SFgate.com, authored by Lou Kerner, of the Business Insider, he predicts that Demand Media will be the 1st $1 Billion dollar Tech IPO since Google.
Here are Mr. Kerner’s arguments for Demand:
Demand’s. ehow.com is the 44th most trafficked site according to Alexa (I show it being #141)…. which gets most of its content from over 10,000 “qualified” contributors that Demand pays very modest fees ($5, $10, $30 plus potential revenue share) to produce the content.”
“”The company had its root in the high margin “direct navigation” business, that they monetize with Google search links.”
“Demand also purchased enom, the second largest domain registrar, after GoDaddy, with over 9.5 million domain names under management in its wholesaling model.”
“While a low margin business, enom is well positioned to scoop up valuable domain names that are dropped by registrants.”
“Other Demand Media brands include Lance Armstrong’s LiveStrong.com (U.S. Alexa 722), comedy site Cracked.com (U.S. Alexa 422), and white label social networking platform Pluck.”
“”To date, Demand has raised over $350 million, the last round at a purported valuation in excess of $1 billion. The company is rumored to profitable on its $200+ million in revenue in 2009.”
The author, Lou Kerner s a cofounder at SecondShares.com, whose previous ventures including Bolt Media,and The .tv Corporation, which licensed the top level domain .tv from the tiny island nation of Tuvalu.
Mr. Kerner did not speak about Demand’s part ownership in NameJet.com which I’m sure is a nice profit center or the coming new gTLD’s in which Demand is expected to be a player.
It would be great to see a company in the direct navigation space go public with a valuation topping $1 Billion.