How to go public

13 August 2010 By Robert Cyran Follow @rob_cyran

Registering domain names and publishing gerbilgrooming tips hardly sounds like a $1.5 bln business. It would put the Web firm on a higher multiple than Apple. Even with the bluechip imprimaturs of Goldman Sachs and Lance Armstrong, Demand s prospectus isn t a convincing howto.

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Demand Media has filed to sell $125 million in an initial public offering. The company owns websites, produces 5,700 pieces of content for them daily and runs an Internet domain registry service. The company's websites attracted 86 million unique visitors in June, according to comScore. Chief Executive Richard Rosenblatt formerly ran Intermix, the company that owned MySpace.

Demand Media has never generated a profit. The IPO is expected to value the company at about $1.5 billion, according to reports in both the Wall Street Journal and the Financial Times, citing unnamed sources.

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