Demand Media Eyes IPO of $14-$16 Per Share
The Internet media firm reports a loss of $6.4 million for the first nine months of 2010.
NEW YORK - Internet media company Demand Media on Wednesday disclosed more details about a planned initial public offering that it first filed for in August.
In an amended filing with the SEC, it said its shares will likely be priced in the $14-$16 range each.
Demand Media, run by former MySpace chairman Richard Rosenblatt, mass-produces evergreen text and video content and publishes it on a slew of sites it owns, such as humor site Cracked,com, as well as on outside sites.
The company in the filing reported a $6.4 million loss for the first nine months of 2010, down from a loss of $18.5 million in the same period a year earlier. The company said if it reduced its assumption that its content can make money for five years to just four years, its loss for the first nine months of 2010 would be $2.4 million higher. Demand Media’s 2009 loss came in at $22.5 million.
Its revenue for the first nine months of 2010 amounted to $179.4 million, compared with $143.0 million in the year-ago period and $198.5 million for all of 2009.
It mentioned plans to offer 4.5 million of its own shares, 3 million shares from existing shareholders and another 1.125 shares that its underwriters can sell. Proceeds from the IPO will go towards investments in content, international expansion and other uses, according to the filing.
If priced in the middle of its range, the IPO would raise $112.5 million. Since it will not receive funds raised from shareholders' sales, it expects net proceeds of $58.1 million.
Demand Media's New York Stock Exchange ticker symbol will be DMD.