SEO + domains worth $1.5bn? Demand Media goes public

[Compound]

So Demand Media went public this morning. Now valued at over $1.5 billion.

They own a few sites you might now: eHow, Livestrong, Cracked.com, among others.

Also, roughly half the business is from their registrar operation - enom

<rant>And, unlike those of us who actually aim for a positive ROI (either through SEO or paid traffic), they do not make a profit.

But, that didn't prevent them from raising ~$300mm in venture money a couple of years back, and now receiving a valuation of $1.5bn...</rant>

Demand Media shares soar in IPO - Jan. 26, 2011

 

[FerrisHilton]

hatersgonnahate.gif

 

[ly2 from WF]

They don't make a profit? Really? How the fuck do they manage not to make a fucking profit? They own half the fucking interwebs.

Also, in b4 bubble 2.0 ranting.

 

[Alive]

I Googled "How To", and eHow was the fist site that came up. How many times "How to..." is searched per day in Google, we can only fathom.

That's a company right there.

 

[Puremeds-J]

I head that if google changes their indexing that demand media is screwed.

 

[eVandals]

Very interesting investors showed up despite Google announcing they plan on "cracking down" on content like Demand's a few days ago.

 

[eVandals]

valuators gonna valuate

 

[leadsupplier]

how the hell are the stocks soaring? it was released at 22, it's at 22.65

on another related sidenote, http://hipmunk.com raised 6 million in funding ... WTF?!

 

[tainted]

House of cards.

 

[ShalaMedia]

Get your sites ready to be sold for ridiculous amounts cause the dotcom bubble part deux is coming ....

 

[tammysf]

Get your sites ready to be sold for ridiculous amounts cause the dotcom bubble part deux is coming ....

high five. :thumbsup:

 

[theunicorn]

was thinking the same thing. content farms are going to wiped out of google more or less this year. so the valuation is a joke.

 

[justo_tx]

They don't make a profit? Really? How the fuck do they manage not to make a fucking profit? They own half the fucking interwebs.

They pay writers and editors to double check the writers. Content creation costs are eating them up, but if they don't get on goog's bad side they should make it up over time (at least that is probably what the investors hope). They create content as searches trend so they can't just spin articles (even if they could I bet they would consider it amateur hour).