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September 01, 2020 10:18am
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Digging Into Demand Media IPO: Losing Money And Domain Name Business Still 44% Of Revenues

Anybody want to buy a content farm? Demand Media filed its IPO registration today. It describes its business this way: While traditional media companies create content based on anticipated consumer interest, we create content that responds to actual consumer demand. Our approach is driven by consumers' desire to search for and discover increasingly specific information across the Internet. It is also filled with all sorts of detailed financial data. It turns out that Demand Media is not yet a very profitable business. Last year it reported $22 million in losses on $198 million in revenues. In the first six months of this year, however, it brought its net loss down to $6 million, on revenues of $108 million.
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