According to a number of reports Goldman Sachs is helping Demand Media to investigate the feasibility of an Initial Public Offering (IPO) – Goldman Sachs was part of a $100m fundraising effort in 2007. Currently valuated at $1.5bn, the company has been able to raise a total of $335 million over its four-year history.
Demand Media is a private company that operates a range of online brands, including eHow, essortment.com, livestrong.com and Cracked.com. It is known for creating web content from a multitude of factors, including consumer demand statistics and the predicted ROI. Demand Media also provides social media platforms to other large company websites and sells content bundled with social media tools through other outlets on the web.
Founder Richard Rosenblatt, a former MySpace chairman, told Vator.tv’s Bambi Francisco in October 2009 that they want to build a sizable standalone company and said that they believe they’re starting to attain the size to go public. In 2008 the company acquired Pluck, the social media platform company, to augment its own social media applications with Pluck’s business of creating social media applications for popular third-party websites. The company has also moved on deals to supply content to mainstream news websites including the Atlanta Journal-Constitution and USA Today.
Despite the company’s business model indicating that the content it creates is purely profit driven, the website claims that its content “solves problems, answers questions, saves money, saves time and makes people laugh”. Either way, regular web users are likely to come across more and more content published by Demand Media’s various outlets.