Demand Media is a
next-generation online media company
May 10, 2006 -- Generation
Partners announced today that it has made an investment
in Demand Media, Inc. (the “Company”). Demand
Media is a next-generation online media company, formed
by Richard Rosenblatt, former Chairman of MySpace.com
and CEO of Intermix Media, Inc. (Amex: MIX). Generation
Partners is a $325 million private equity firm focused
on the media, information services, and business services
sectors. Generation’s co-investors in the transaction
are Spectrum Equity Investors and Oak Investment Partners.
Demand Media will leverage
the rapid evolution of the internet to create an online
media business with low content creation, publishing,
and traffic acquisition costs, and advertising sales
which are automated, recurring and predictable. The
Company, with offices in Los Angeles and Seattle, has
been built to pursue this vision through the merger
of three entities. These companies are: eNom, the third
largest domain registrar in the world; eHow, a niche
content site of “how-to” articles; and a
domain name portfolio. Currently, Demand Media’s
150,000 owned domain name properties consist only of
paid links – links to other web sites where the
domain name owner receives revenue for delivering visitors
through the links. Management’s plan is to add
light content to these sites, which it believes will
greatly increase both the traffic to these properties
and the advertising revenue generated from them. The
Company will also produce revenue from its domain registration
business, which has over 6.4 million domain names registered
on its platform. Approximately 10% of all global internet
queries pass through a site which is registered with
Demand Media.
Demand Media is led by
an experienced management team. Richard Rosenblatt
is a highly successful executive in the online media
and marketing business. Prior to founding Demand Media,
Mr. Rosenblatt served as Chairman of the Board of MySpace.com
and CEO of Intermix Media. According to the internet
rating company Alexa.com, MySpace is now the #4 most
trafficked site on the internet, behind Yahoo, Google,
and MSN. Mr. Rosenblatt led the company through its
successful sale to News Corporation (NYSE: NWS) in September
2005 for $650 million. Previously, Mr. Rosenblatt was
Chairman and CEO of iMALL (NASDAQ: IMAL), which was
sold to Excite@Home for $565 million in October 1999.
In addition, Mr. Rosenblatt was a founding investor
and Vice Chairman of Great Domains, one of the pioneers
in the domain industry, which was sold to Verisign in
October 2000 for $100 million. Mr. Rosenblatt has also
recruited several executives with deep online media,
domain, and business development expertise.
John Hawkins, Managing
Partner of Generation Partners said, “We are pleased
to invest behind Richard, a world-class entrepreneur
and CEO. His vision for Demand Media is to create a
new online media company of significant scale, and we
are excited to work with him and his management team
to help them achieve this goal.”
Richard Rosenblatt, Demand
Media’s CEO said, “Generation Partners’
combination of financial, media and investing experience
made them the perfect partner for our company. I worked
closely with them during my tenure at MySpace/Intermix
and was repeatedly impressed by their insights and understanding
of the internet media space. “
About Demand Media
Founded in April 2006,
Demand Media (www.demandmedia.com) is a next-generation
web media company that receives more than 25 million
unique visitors per month through its more than 150,000
domain names and niche content web sites. Demand Media's
traffic is organic and its content proprietary, user-generated
and viral, allowing for a unique, targeted and effective
marketplace for both users and advertisers.
Demand Media's unique combination
of a world-class registrar (eNom), more than 150,000
domain names, and ever-growing content and content web
sites give advertisers an innovative new medium to reach
customers worldwide. Demand Media is headquartered in
Los Angeles, with investment capital from Generation
Partners, Spectrum Equity Investors, and Oak Investment
Partners.
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