Share what you know with millions of people
Focus is the best place to turn what you know into remarkable content
0
Any thoughts on the Demand Media IPO
Demand Media filed to go public a few weeks ago. Based on a quick read of their S1, it looks like they are running out of cash and need to raise more money in order to grow. Further, they aren't profitable (unless you take management approach and look at EBITDA). How do you think the market is going to react to this?
Events
- Dos and Don'ts of Small Business Marketing May 29 @ 11 am PT
- Lead Nurturing 202: The Next Generation May 31 @ 11 am PT
- The Tricks to Paid Media June 6 @ 11 am PT
- Display Advertising for Brand Awareness June 20 @ 11 am PT
Related Activity
1 Answer
I don't know a lot about Demand, but it sort of looks like a "Frankencompany". They have the Enom business which is a good one, but won't get a media company multiple on that. Then, they have a portfolio of sites of which the most successful one, Ehow, was acquired. Not to take anything away from the corporate development team down there (seems like it's a good one), but that is a tough long term strategy.
Even so, I do think the IPO will be successful. Richard Rosenblatt will work his magic on the buy side, the bankers will mobilize the sales teams for this one, and there is pent up demand for large "internet" IPOs. I just don't see Demand getting the multiple they hope for given the frankenmodel they have.
Answer This Question